Tax cutting strategies and "tax loopholes" are not only for the rich.

The law is the same for everyone, and these strategies are available to anyone.  There is still time to implement some year end tax cutting strategies.  These strategies include:

• Increase your 401(k) deduction for the rest of the year.  The limit for 2009 is $16,500; $22,000 if you are age 50 and older.
• If eligible, open an IRA
• Consider a Roth IRA - although you won't save taxes this year, you will save taxes at retirement
• Donate to charity
• Contribute to a 529 College Savings Plan
• Look at your investment performance, and consider taking investment losses and gains
• Shift payments of deductible expenses from one year to another, such as mortgage interest, medical bills and real estate taxes
• Make your January Mortgage Payment in December
• Purchase a hybrid car
• Install energy efficient improvements on your home for the energy tax credit
• Have your employer increase your withholding if you think you may be hit with a penalty for underpaying 2009 taxes

For business owners:
• Purchase equipment now, and utilize the Section 179 deductions
• Hire your children (shift income to lower tax bracket)
• Make sure all expenses are documented so that you maximize your deductions, and your documents will stand up to an audit, if necessary.
• Shift income from one year to another to have it fall where it will be taxed at the lowest rate.

For more information on these strategies, please contact us for a no cost, no obligation consultation.