Comments on: Time is Running Out for Making 2008 Tax Deductions http://genxfinance.com/time-is-running-out-for-making-2008-tax-deductions/ Helping a unique generation achieve financial independence. Thu, 09 Feb 2012 18:21:30 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Eric J. Nisall http://genxfinance.com/time-is-running-out-for-making-2008-tax-deductions/comment-page-1/#comment-96876 Eric J. Nisall Thu, 11 Dec 2008 14:19:32 +0000 http://genxfinance.com/?p=821#comment-96876 With regard to avoiding tax liability on capital gains distributions, it is very important to do your research. For one thing, the fund may have sales fees attached to it if it is ot held for a certain amount of time. Secondly, you have some funds which pay what is called a return on capital which is not taxed at all; it is simply a payment back to fund owners of excess cash in order to be tax-friendly. Lastly, selling may not be a viable option, especially if you have held the fund less than a year, and will have made a net profit on the sale. Another thing that people can do is to sell off some of their losing stocks/funds to help offset any capital gains from sales or distributions, and as a bonus, any losses in excess of gains can be used to offset earned income up to $3,000 per year, thereby further reducing the tax liability. Along the lines of tips that are not often relayed in posts like this is to take care of all medical visits and procedures in the current year. By grouping all medical expenses within a calendar year, the chances of reaching the 7.5% of AGI floor is more likely. Also, tuition payments covering periods in the first 3 months of 2009, the expenses can be claimed on the 2008 tax return. I completely agree about getting started with the planning process as early as possible, and try to get my own clients as well as family and friends to thinks about it throughout the year to make it easier. I have listed some tips in my article Get A Jumpstart On Your 2008 Tax Return By Getting Organized Early With regard to avoiding tax liability on capital gains distributions, it is very important to do your research. For one thing, the fund may have sales fees attached to it if it is ot held for a certain amount of time. Secondly, you have some funds which pay what is called a return on capital which is not taxed at all; it is simply a payment back to fund owners of excess cash in order to be tax-friendly. Lastly, selling may not be a viable option, especially if you have held the fund less than a year, and will have made a net profit on the sale.

Another thing that people can do is to sell off some of their losing stocks/funds to help offset any capital gains from sales or distributions, and as a bonus, any losses in excess of gains can be used to offset earned income up to $3,000 per year, thereby further reducing the tax liability.

Along the lines of tips that are not often relayed in posts like this is to take care of all medical visits and procedures in the current year. By grouping all medical expenses within a calendar year, the chances of reaching the 7.5% of AGI floor is more likely. Also, tuition payments covering periods in the first 3 months of 2009, the expenses can be claimed on the 2008 tax return.

I completely agree about getting started with the planning process as early as possible, and try to get my own clients as well as family and friends to thinks about it throughout the year to make it easier. I have listed some tips in my article Get A Jumpstart On Your 2008 Tax Return By Getting Organized Early

]]> By: Jeff Rose http://genxfinance.com/time-is-running-out-for-making-2008-tax-deductions/comment-page-1/#comment-96819 Jeff Rose Wed, 10 Dec 2008 23:38:03 +0000 http://genxfinance.com/?p=821#comment-96819 Good call on taking those year end expenses. Thankfully, we're moving offices on the 29th and we've made all our expected purchases before year end. Can't wait to meet with the CPA to see where I am tax wise. Keeping my fingers crossed that Uncle Sam doesn't want any more..... Good call on taking those year end expenses. Thankfully, we’re moving offices on the 29th and we’ve made all our expected purchases before year end. Can’t wait to meet with the CPA to see where I am tax wise. Keeping my fingers crossed that Uncle Sam doesn’t want any more…..

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