2011 Tax Advantages coming to an End

As Frank Sinatra's song, 'My Way,' begins - 'and now the end is near,' tax planning season is ending.... Ok, ok, so my recollection of his song isn't exact, but it is the accountants' version. And while the President and Congress took a (well-deserved?) Thanksgiving break, I hope they were mental about ways to un-stuff the federal budget. For you, my suggestion is to take as many deductions this year as you can. Next year is totally uncertain.

Some of the tax benefits you have been enjoying come to an end as of December 31 (unless extended by Congress):

Social safety Tax Holiday: For 2011, you only had to pay 4.2% into the public safety theory instead of 6.2%. This stimulus didn't hurt the public safety trust fund, as Congress is production up the 2 Billion from their pay general funds. I hope you used the extra money wisely, like expanding your 401(k) percentage, or paying down a debt.

Educator price Deduction: This 0 deduction (worth for those in the 15% tax bracket) for teacher's out-of-pocket classroom expenses covered classroom supplies, mileage, etc, as long as receipts were properly kept. (There was probably a committee that thought about that teachers spend about a year out of pocket for the classroom. Right, teachers? But it's the notion that counts.)

Tuition and Fees Deduction: This deduction could sell out your revenue field to tax by up to ,000 (or 0 for those in the 15% tax bracket), even if you did not itemize. It especially would help those who do not qualify for the American chance or lifetime studying credits.

Mass Transit Fringe benefit Reduction: Hoping that you took benefit of this 0 a month pre-taxed benefit (worth 0 a month) for mass transit or parking straight through your employer. For 2012, the mass transit whole is reduced to 5 a month, while the parking remains at 0. (Apparently the M.T.A. Has plans to sell out their fees.)

Mortgage guarnatee excellent Deduction: As long as your (joint) adjusted gross revenue was less than 9,000 this deduction, for the cost of mortgage guarnatee for buying or building a first or second home, gave you the capability to treat this price as home mortgage interest. I know this helped a lot of you struggling to keep your homes. Have you called your Congressional representatives yet?

Sales Tax Deduction on agenda A: If you didn't pay state and local revenue taxes, like retired public employees or those living in a 'no-income-tax' State like Florida, you could use the optional sales tax deduction and cut your revenue tax. Think buying some big-ticket items like a new car.

Home energy Credit: Although the prior credit was much higher, it is still worth 10% of the cost of your new windows, doors, skylight, insulation, and heating and air conditioning systems, but with a maximum 0 credit (0 for windows). If you already took this credit in the past, you cannot take it again. If not, do this by December 31. 0 is nothing to laugh at.

Flex Plan: This tax benefit allows you to contribute to a pre-tax inventory to pay for assorted curative expenses while the year. For 2011, the government took away using this inventory to pay for non-prescriptions meds like over-the-counter aspirin, allergy meds, band aids, etc (except for insulin). Except for your employer's restriction, there is no statutory limit on the whole you can sign up for. In 2013 there is a congressionally mandated maximum of ,500. Therefore, for 2012 Think expanding your spending whole and accelerate some curative expenses like eye laser surgery or tooth veneers.

,000 Gift: Although not expiring in general, if you don't use this by the end of the year, the 2011 gift capability is gone. This every year gift exclusion allows you to give to your children, or anything else, like your accountant, up to ,000 without filing any gift tax forms. And if you have more spare change, the 2011 lifetime limit is -Million. Expect to see this decrease to the form -Million.

Planning Ideas: If you haven't spoken with your tax preparer this year, call now. Report your possibilities, like maximizing your 401(k) contribution, selling some investment losers, or taking benefit of the 15% long-term capital gains rate on profits, bunching deductions to be able to itemize, paying your January mortgage payment, real estate tax, or State revenue tax evaluation in December, or production a contribution to your state's 529 college plan. Your preparer has nothing to do this week. Give a call.

(And remember: Money does not talk; it just goes without saying

Have a good week.

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