Friday, February 3, 2012
Save Big on 2012 Taxes
While there's uncertainty about the 2012 tax year, there are several things you can do to help minimize your tax liabilities. A recent Financial Planning article by Ann Marsh explores 15 strategies to help you cut down on taxes:
1) Consider the $5 million estate and lifetime giving tax exemptions.
2) Channel estate transfers through family limited partnerships.
3) Open a donor-advised fund.
4) Use highly appreciated stocks for charitable giving.
5) Gift out any required mandatory retirement account distributions.
6) Consider Roth IRA conversions.
7) Direct annual $13,000 gift- tax exemptions to 529 plans.
8) Watch the Foreign Account Tax Compliance Act.
9) Invest in municipal bonds.
10) Look at investment interest expenses for deductions.
11) Invest in an independent film.
12) Feel free to use 401(k) catch-up contributions for older clients.
13) Revisit estate plans frequently.
14) Work to avoid the alternative minimum tax.
15) Team up with CPAs.
Click here to read the full article.