Year-End Tax Planning

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Do you feel that you’ve got a good handle on your tax planning for the year? The window is closing fast. After that there isn’t a lot you can do to do about the year. If you wait until January or later, 2009 will pretty much be done. If there were opportunities to pay less tax for the year, it’ll be too late.

There are two solutions to get ready for year-end: Get expert up-to-date advice or learn to do-it-yourself from the experts.

Strategy #7 from our December year-end coaching program at USTax Aid Coaching starts with looking at your last year’s return. Use this tip to see if there are some opportunities for you these remaining few days.

You are looking for carried forward or suspended expenses and losses. These include:

Investment expenses Suspended business losses Suspended real estate losses Carry-forward charitable donations Carry-forward net operating loss Capital losses An unused loss is money sitting in the bank. Cash it in!

If you consistently have unused investment expenses (which are allowed as a deduction only against investment income), consider forming an S Corporation or an LLC, electing S Corp status to take the deduction.

A suspended business loss generally means that you haven’t had enough basis to take the loss. For example, if you have a flow through business structure like an S Corporation, you might be limited in how much of the loss you can actually take against other income. Basis for a business is calculated based on how much you paid for the stock and how much in loans you have made to the company. If the company has taken out loans that you don’t personally have responsibility for, you might have made a good business decision, but a bad tax decision. You just lost the loss.

Probably the hottest topic in real estate, at least in my world, is how to take real estate losses.

There are a lot of aspects regarding strategies for taking real estate losses that I cover in Part 2 of the December 2009 coaching section. It will be posted to the US Tax Aid Coaching site within the week. Remember you get TWO complete home study courses every month, plus two coaching sessions and unlimited access to the private forum. It’s over $790 of value each and every month for just $67/month.

Here’s just one of the strategies we’re talking about this next month. If you have a property that you are getting rid of at a loss, make sure it’s put into service first. Otherwise, if it’s a property that has never been rented, it’s an investment. The loss is therefore a capital loss and you’re stuck with just $3,000 of capital loss per year. Put it in service first, and you’ve got a real estate business. That means 100% of the loss will be deductible when you sell.

You’ll get many more real estate loss strategies and other strategies for turning unused expenses, suspended losses and loss carryovers as part of the US Tax Aid Coaching program in December.

Right now, there are two options if you want to pay less tax in 2009.

Option #1: Meet with your tax advisor before year end.

Find out more about our full service tax practice and how we save our clients money, headaches and time at USTaxAid Services, please visit our site or Contact Us.

Option #2: Get good info quick about all the 2009 changes.

Are you more the do-it-yourself type? We can help you there too! Sign up today to start with USTaxAid Coaching to receive two home study courses, twice monthly coaching sessions plus a private forum for your questions.

We start December 8, 2009 with the first of two year-end coaching sessions in December. As soon as you sign up, you can download the first home study course complete with manual, audio teaching aid and homework to get ready for the call. There’s also a bonus Nexus Handbook full of information on the hottest tax issues going right now – state nexus. You get that all when you sign up now at USTaxAid Coaching.

I look forward to talking to you December 8th!

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