Personal Tax

The year-end brings the holidays and a barrage of charitable solicitations.  It is also your last chance to make a charitable contribution and obtain a deduction for 2010. Over the past few years, the IRS has tightened the recordkeeping rules for charitable contributions.  Therefore, it might be appropriate to review the recordkeeping requirements before making your year-end … [Read more...] about Tips for Year-End Donations

Taxpayers are required to prepay their taxes for the year through withholding or estimated tax payments.  The amount that must be paid in advance is an amount equal to the lesser of 90% of the current year’s tax liability or 100% of the prior year’s tax liability.  Higher-income taxpayers, those with a 2009 AGI of $150,000 or more, are required to prepay the lesser of 90% of … [Read more...] about Increased Year-End Withholding May Avoid or Reduce Underpayment Penalties

If you are planning to purchase a new automobile before the end of the year, it might be appropriate to purchase either a hybrid or lean-burn vehicle.  Credits for these types of vehicles range from $900 to $2,350.  However, this credit has phased out for most manufacturers and is currently available only on qualified vehicles manufactured by General Motors, Chrysler, Nissan, … [Read more...] about Pick a Hybrid or Lean-Burn Vehicle

One of the greatest benefits of the tax code is the special tax rates that currently apply to gain recognized from the sale of capital assets held for more than a year (long-term).  The special tax rates apply to virtually all capital assets including land, improved real estate, your main and vacation homes, and business assets in excess of the accumulated depreciation … [Read more...] about Capital Gains Strategies

 2010 is the first year in which taxpayers—including married taxpayers filing separately—are able to convert funds in regular IRAs (including SEP and Simple IRAs) to Roth IRAs, regardless of income level.  This can provide a significant opportunity for certain taxpayers. There are several advantages to a Roth IRA - All future earnings and distributions at retirement generally … [Read more...] about New Roth IRA Opportunities