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