Here are four ways you can cut your 2008 taxes:
Push December billings into January, as long as your clients/customers have no objections. This moves what would be 2008 income into 2009. If you are cash shy, borrow on your line of credit and repay the loan in January. Imagine you would normally receive $10,000 in December. If you are in a 35% tax bracket, you can defer up to $3,500 in taxes into 2009.
Pay as many expenses as possible in December. This increases your 2008 deductions, further reducing taxes.
Make your January state quarterly payment in December. It isn’t due until January 15th. However, by paying it by December 31, you can take the deduction for 2008. (Note: Do not do this for your fed quarterlies.)
Pay your home and other property taxes by year-end. Under the same principle, you can deduct those property taxes in 2008.
Take these four simple steps and save thousands of dollars on your 2008 taxes.
Work hard. Work smart. Make money. Have fun.
John R. Ingrisano
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