2008 - Individual Tax Planning Suggestions

·         Medical Expenses – Deductible when paid

·         Taxes – May want to prepay state taxes if you will owe

·         Taxes – May want to prepay your property taxes due in February

·         Mortgage Interest

      

      ·         Consolidate debt onto your house so the interest is tax deductible

·         Charitable Contributions – Make before December 31st

      ·         May deduct mileage at 14 cents per mile

·         Depreciation

      ·         May deduct up to $250,000 of new equipment for Federal purposes

    ·         Cars are limited to $10,960 of depreciation in the first year

·         Auto expenses

     ·         May take either actual expenses or mileage at 50.5 cents per mile for January 1st - June 30th and 58.5 cents per mile for July 1st to December 31st

     ·         Once you elect a method, you are married to it for the life of the asset

·         Pension Plans

    ·         SEP IRA limits up to 20% of income with a maximum contribution of $46,000

    ·         Traditional IRA’s up to $5,000 and if over age 50 up to $6,000

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