Two new tax laws passed this year — the Tax Increase Prevention and Reconciliation Act (TIPRA) and the Pension Protection Act (PPA) —have added a few new wrinkles to the mix.
Of course, in most years, your rule of thumb should be to push discretionary income into the next year, when practical. On the flip side, try to pull deductions into 2006.
Here’s why: Any income you defer until next year won’t incur taxes until then. At the very least, that buys you some tax deferral for one year. And, depending on what happens over the next 12 months, you might be able to defer the tax further or even wipe it out completely.
On the other hand, deductions accelerated into this year can offset your 2006 tax liability. So, you reap an immediate tax benefit instead of having to wait another year.
With all that in mind, we offer you the 27 best tax-saving strategies for the end of the year: nine each for personal taxes (starting below), business taxes (page 3) and taxes on retirement plans and investments (page 6).
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/7257/27-tax-saving-strategies-for-year-end-06 "