Once tax day has come and past, and many people are feeling the pain with
their tax situation still fresh in mind, it is a good time to begin tax planning for the
next tax day. There are several ways that you can soften the blow for next year if
you begin planning now.
Here are some tax tips:
1. Invest in your 401(k) or SEP up to the maximum that the company will match.
2. Invest $3000 in Roth IRA’s, the best deal that the government has going, with
tax-free growth into the future.
3. Maximize and keep receipts for itemized deductions such as mortgage interest,
investment interest on margin accounts, charitable contributions, real
estate taxes, car and boat taxes, etc.
4. Invest stock mutual funds into IRA’s, 401(k) and SEP’s to defer taxes since
they trade more.
5. Invest in excellent individual stocks and bonds in your taxable accounts and
hold them to defer capital gains.