Running The Numbers Blog

There’s still time for year-end financial housekeeping to minimize your 2011 Tax Liability.

Here are a few of my thoughts.

Fund your Retirement Account - Invest the maximum amount if you can.  Maximum contribution limits depend on the type of plan you have. 

 
True-up your Q4 Estimated Tax Deposit - If you make estimated tax payments, work with a CPA to plan your 2011 tax liability before your Q4 payment is due in January 2012 to avoid overpaying or underpaying.

Sell Losing Investments - You may be able to offset gains from investments by selling losers.

Maximize your Itemized Deductions - If you itemize and you paid sales tax on a large purchase in 2011 (i.e. a new car) you may be able to maximize your tax savings by choosing to deduct Sales Tax instead of State Income Tax.

Upgrade Your Home - This is your last chance to claim a tax credit for making energy-efficient improvements to your principal residence. The home-energy tax credit expires at the end of this year.

Donate to Charity - If you itemize your deductions, you may be able to reduce your tax bill by donating items or money before year-end.

Give to your Family - You can give up to $13,000 this year to any number of recipients and avoid the Gift Tax.

Spend Down your Flex Plan if you have one.

If You Own a Business

Purchase equipment that qualifies for Section 179 or Bonus Depreciation - If you own a business you can reduce income by placing equipment in service before December 31.

Pay Employee Bonuses before year-end.

You can reduce your taxable income by writing off any obsolete inventory.

Make a charitable donation through your business.

There is a good chance that tax rates will increase after 2012 and tax breaks will be harder to find. Be sure to consult a qualified professional about whether these strategies are right for you.

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The IRS has increased deductible mileage rates for business use of your vehicle to 55.5 cents per mile for the second half of 2011. As always, remember to keep an accurate log of business miles driven.  ..

Although this is an accounting and tax focused Blog, from time to time I'll include comments about triathlons or other endurance-type events.  Here is a Race Report from a recent 50k Trail Run called the Dirty Thirty.  Enjoy...!  ..

As a small business owner you have lot’s to think about.  Just a reminder to remember to complete your W-2’s and/or 1099’s.  Here are some very general guidelines for 1099’s, be sure to call me with any questions. ..

Don’t wait until the last minute to start tax planning. Mid-April will be here soon enough and there are many things you can do to ensure a stress-free tax filing season. ..

WOW! It’s been a fun-filled few months with lots of family activities and successful completion of my second Ironman (Arizona on Nov 21st).  The pain from the race has barely subsided and I’m already planning my 2011 schedule that will (hopefully) include running Rim to Rim to Rim (R2R2R) of the Grand Canyon.  I think planning the logistics might be more difficult than the actual run! ..

Future CU students, like many others nationwide, will face increased tuition rates following a vote by the regents to raise both in and out-of-state tuition. Fortunately there are ways to prepare financially for college as well as tax strategies to lessen the blow. Contact me for more information.

Call me for a FREE 60 minute consultation to make sure you get your business off to the right start. I’ll guide you through the federal and state regulations, advise you on business entities available, and help you maximize your tax deductions. ..

Crunch Time! With less than 2 weeks left in the 2009 tax year, its time to take care of those year end moves to help your tax liability.  The specific moves you should make will depend on your situation.  You can contact me for more information.   ..

“Consumer Economy” is a term that sends shivers up my spine. There’s some debate on whether or not the U.S. economy is predominantly consumer driven but there is little argument that our economy is MORE consumer driven now than it was for our parents. In the big picture its clear that we can’t simply spend our way to prosperity but this point is also important to remember in our personal lives, especially this time of year when many wear out their credit cards.   ..