Tax Tip of the Week
900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 ·
215.563.0276 ·
Fax: 856.667.3652
A little planning can save you big dollars
For the week of
November 12, 2001
As we approach the end of the tax year, here are some tax-cutting decisions you should consider:
- Take stock losses to offset capital gains for the year. Up to $3,000 of losses
in excess of gains can offset ordinary income. Any unused losses can be carried forward to next year.
- Make the maximum allowable contribution to your company's retirement plan and/or
your IRA.
- Maximize your use of the education tax credits.
- If you have student loan interest, you may be able to deduct up to $2,500 for the
2001 tax year.
- If you refinance a home mortgage for the second time, deduct the remaining mortgage points from the first refinancing.
And if you have a business:
- Section 179 of the Internal Revenue Code allows you to deduct up to $24,000 of
new equipment in 2001 instead of taking normal depreciation on it. It may be worth accelerating into 2001 some
equipment purchases that you intended for next year.
- Consider hiring family members to work in your business to take advantage of their lower tax rates. The pay must be reasonable for the work performed.
Please contact us to see what year-end tax moves could be available in your specific
circumstances. 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.
