I met with my tax guy last week and he got me thinking about some end of year tax moves I need to make. Here are a few tax tips for individuals and a few for you small business owners as well.
1. Ask your boss to pay your Christmas bonus after the new year. That way you will pay taxes on it in 2011 and not 2010.
2. Sell off loser stocks this year and sell winners after the new year to reduce capital gains exposure
3. Pay your personal property taxes before year end
4. Make charitable contributions before the end of the year
5. Pay as much towards any outstanding medical bills in 2010
6. If you are a high-income earner, consider converting your traditional IRA to a Roth IRA.
7. Pay January’s mortgage payment in December so you can deduct the interest in 2010.
8. Contribute to your retirement plan (401k, IRA, etc)
9. If you are self-employed, stock up on office supplies and make other necessary purchases before year end.
10. If you have an FSA, make sure to use up all the funds before 2011. Also, stock up on OTC meds, because one of the 2011 FSA changes is that you will no longer be able to use it for OTC meds unless you have explicit instructions for use by a doctor.
Looking for more tax tips?
Here are a few other articles if you are looking to dig in deeper..