Tax Tip of the Week
900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 ·
215.563.0276 ·
Fax: 856.667.3652
For the week of
November 13, 2000
Year-end planning can cut your tax bill
As we approach the end of the year, there are some tax-cutting decisions you should consider:
- Take stock losses to offset capital gains for the year. Losses
in excess of gains can be used to offset ordinary income, up to a maximum of $3,000.
- Make the maximum allowable contribution to your company retirement
plan and/or your IRA.
- Maximize your use of the education credits.
- If you have student loan interest, you may be able to deduct
up to $2,000 this year.
- Don't change your marital status before year-end without considering the tax implications. Changing the dates of a year-end event could result in sizable tax savings.
And if you have a business:
- Section 179 of the Internal Revenue Code allows you to deduct
up to $20,000 of the cost of equipment purchased this year, instead of depreciating the cost over several years.
- Consider hiring family members to work in your business to take advantage of their lower tax rates. Their wages must be reasonable for the work performed.
Please contact us to see what year-end tax moves could
be available to you. We are here to see that you pay no more tax than the law requires.
Click here to view previous tax tips.
"Tax Tips" are published weekly to
provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders,
and current tax information.
The information contained in this site is of a general nature and should not be acted upon in your specific situation
without further details and/or professional assistance.
If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list
to receive other tax-cutting information from time to time, please contact our office. We're here to help.
