An Internet hoax that made the rounds earlier in the year forecast “15 days of darkness” in November, but things are looking considerably brighter this month for tax-savvy individuals.
Strategy: Take advantage of the favorable tax provisions on the books while avoiding potential year-end pitfalls. Appropriately enough, here are 15 ways you might save taxes in 2015.
1. Pull in itemized deductions. Although tax planning can straddle several years, your primary concern right now is to lower taxes for 2015. Generally, it makes sense to accelerate deductible expenditures into the current year to reduce taxable income already in the bag for this year. For instance, you might prepay state and local income taxes that are due in January of next year, so you can claim a bigger deduction on your 2015 return. However, this strategy may not be advisable if you are in the alternative minimum tax (AMT) mode (see No. 3).
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