When it makes sense, you can shift income and expenses at year-end to your tax advantage. Here are 10 ways to trim your personal tax bill in 2010.
1. Generate an energy tax credit
If you install certain energy-saving devices in your home, you may qualify for the “residential energy credit.” The credit for 2010 is 30% of qualified expenses up to a maximum of $1,500 (reduced by any credit claimed for 2009).
Strategy: Complete installations before Jan. 1, 2011. As things stand now, the credit is scheduled to expire after 2010.
The credit may cover more expenses than you think. It’s available for such items as insulation materials; exterior windows (including skylights); exterior doors; central air conditioners; natural gas, propane and oil water heaters or furnaces; water boilers; electric heat pump water heaters; certain metal roofs; biomass stoves; and advanced main air circulating fans.
Tip: Proposed legislation in Congre...(register to read more)