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Beat the IRS: Cash in on 7 prime-time tax opportunities

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in Small Business Tax,Small Business Tax Deduction Strategies

Uncle Sam often gives with one hand and takes away with the other. For instance, several key tax breaks that were created by legislation in recent years are going off the books at the end of 2007 (unless Congress takes action to extend them).

Strategy: Cash in your tax chips while you can. Below we’ve listed seven prime-time tax-savers that won’t be available once the clock strikes midnight on Dec. 31.

Of course, Congress may decide to renew these tax saving opportunities before the end of the year, but why take the chance?

1. Give IRA funds to charity

Under the Pension Protection Act of 2006, an individual age 70 1/2 or older can transfer up to $100,000 in an IRA directly to a charity without paying any income tax. By doing so, you can effectively reduce or even eliminate the tax due on required minimum distributions (RMDs). Normally, you would pay tax on RMDs at ordinary income rates.

As things stand no...(register to read more)

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