Here
are a few year-end suggestions that
could make your holidays even happier.
1.
Losses - If any of the stocks, mutual
funds in your non-qualified portfolio
have accumulated unrealized losses;
you may wish to liquidate them to offset
realized gains. If your losses exceed
the gains you may credit up to $3,000
against income. If the losses are greater
than $3,000 they can be carried forward
for the next five years.
2. Do you have a medical expense account?
If you do and there is a balance, USE
IT, even for over-the-counter medications.
Otherwise you will lose what's left
in the account at the end of the year.
3. This is a perfect time to give to
your favorite charity. Be sure to write
the check prior to December 31 and get
a receipt stating that the gift was
made in 2006. You'll be doing the charity
and yourself some real good!
4. Are you over 701/2? I won't tell,
but if you have an IRA and haven't taken
your Required Minimum Distribution,
"Uncle Sam" will tell YOU,
to come up with the required amount
AND slap you with a 50% penalty. Talk
to your tax adviser today!
5. Got a 401(k), 403(b) or other qualified
plan sponsored by your employer? If
you can, max it out! You are entitled
to put away $15,000 in '06 plus another
$5,000 if you're 50 or older.
6. Now, about that year-end bonus that
you've been expecting. If you do get
one, better plan on the tax consequences
and don't spend it all or come April
15 you could be short.
7. Did you get a big refund for '05?
If so you may wish to adjust your final
paycheck to change your withholding.
Talk to your tax adviser.
I
hope these cheery holiday financial
ideas will be of help and add to the
jingling in your bank account.
Wishing you all a very joyous holiday
and a happy and prosperous
New Year!
Bob
