Nov
5
End-of-Year Tax Tips - How to Pay Less Tax
The end of the year is fast approaching, so now may be a good time to start thinking about steps that could help reduce your 2012 income tax liability. Of course, before you take any specific action, be sure to consult with your tax professional.
Consider income timing. Some tax experts recommend deferring income to the next tax year, if possible, to help lower gross income. The situation this year is more complicated because federal income tax rates are scheduled to be higher in 2013. Congressional action on taxes may not become clear until the new Congress takes office after the first of the year.
Examine your capital gains and dividend strategy. The favorable tax rates on capital gains and dividends are scheduled to expire after 2012.
Consider income timing. Some tax experts recommend deferring income to the next tax year, if possible, to help lower gross income. The situation this year is more complicated because federal income tax rates are scheduled to be higher in 2013. Congressional action on taxes may not become clear until the new Congress takes office after the first of the year.
Examine your capital gains and dividend strategy. The favorable tax rates on capital gains and dividends are scheduled to expire after 2012.
