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Personal Tax Savings

by on
in Small Business Tax,Small Business Tax Deduction Strategies

1. Put a charge into cash donations

Generally, you can deduct the full amount of cash contributions or “cash equivalents” donated to charity this year. Current tax law requires that you substantiate gifts of $250 or more. Strict new requirements under PPA for cash or cash-equivalent donations generally don’t take effect until 2007.

Strategy: Charge cash donations on your credit card before year-end. You can deduct the contributions posted on your account this year, even though you don’t actually pay the charges until 2007. Similarly, you can deduct online gifts made this year on your 2006 return.

As a rule, you can deduct the fair-market value of non-cash gifts if you’ve held the property for more than a year. But other special rules apply to gifts of property.

2. Secure deductions for household items

The tax law imposes restrictions on deductions for charitable gifts of tangible personal property. Example: You can’t claim a...(register to read more)

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