Saving Money on Taxes

[Evelyn Leeper]

As the end of the year approaches, here's a suggestion:

If you are itemizing your deductions this year, you may want to
calculate if you can save money by paying next year's charitable
contributions this year.

If your deductions including charitable contributions are above the
standard deduction, but not including charitable contributions are below
it, you can save money by alternating. For example, pay your "2009"
contributions this month and so claim double contributions this year
(since you also have your "real" 2008 contributions), while next year
you claim the standard deduction. This in 2010, pay your 2010 and 2011
contributions, and so on.

(All this assumes that you have a fairly fixed schedule on what you
contribute.)

Some people have said that they can pay ahead on their local property
taxes, which gives you an even better deal.

--
Evelyn C. Leeper
Be braver. You cannot cross a chasm in two small jumps.

[clams_casino]

Evelyn Leeper wrote:

I do the same, but typically the opposite. I'll be holding off most
donations until next year (mostly in January and next December) while
paying 3/4 of this year's property taxes next year and over paying state
income taxes next year, having held back this year. We are allowed to
pay property taxes taxes in four installments - Sept , Dec, March and
June. Every other year, I pay the Sept taxes when due, but pay the
December installment in January. The tax savings far exceed the 1%
fine for being a month late. I do a similar approach to state income
taxes as I do estimates. The approach does not work for most, but those
of us on the borderline of exceeding the standard deduction can save
significant dollars by piling up deductions in alternate years.

[Bay Area Holdout]

"Evelyn Leeper" <ele...@optonline.net> wrote in message
news:49466fe2$0$4886$607e...@cv.net...

Another twist on the charity is to set up a Owner defined charitable fund.
Most brokerage houses have them now and they cost nothing to set-up but most
havea minimum amount required to fund them the first time.

Fund them and add to them when you like and you get the charitable tax
deduction in that year, you can then disperse to the charities you like when
you like, next year, five years from now, after you die. Only requirement is
they have to be REAL charities as the fund will check them out. Also you
cannot receive any "gift" for making the donation, like books or DVD's or
whatever...a thank you note is okay.

Also once you give the money to the fund you can't get it back, ever. BUt as
mentioned you can control where the money goes. Check them out on line at
Schwab or other brokerages.

Usefull if you got a big pile of cash one year, sale of house or whatever
and want to give some to charity.