3 Smart Year End Expenditures

By John Ellsworth, Esq December 1st, 2012

While in the mode of holiday shopping, consider these 3 tax-smart purchases.

Make Charitable Contributions

Consider making charitable contributions before year-end both to obtain the maximum tax deduction and to fulfill any charitable programs or commitments you may have established for the year.

Pay Tax-Deductible Expenses

Consider paying tax-deductible expenses prior to year-end. Some common examples are real estate taxes, quarterly state or local income taxes, investment-related expenses, and dues. These must be paid by December 31 to obtain a deduction this year. Please call us if you’d like to discuss these deductions further.

Buy a New Car

If you need a new car, now is a great time to purchase or lease one. Frequently, dealers are anxious to clear out last year’s inventory prior to year-end. In making your choice, consider the federal tax (and occasional state tax) advantages for buying fuel-efficient vehicles such as plug-in hybrids and electric vehicles.

This entry was posted on Saturday, December 1st, 2012 at 6:49 pm and is filed under Avoiding Tax, tax filing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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