|* KEEP METICULOUS RECORDS. Unless you |
want to pay more taxes than you have to, improve
your tax record-keeping system. Have a notebook
handy to keep track of miscellaneous tax-deductible
* PREPARE YOUR TAX RETURNS. This is the
best way to learn about tax-saving techniques. A
typed return will show the IRS that you take your
tax-preparing duties seriously. It will also eliminate
at least one reason for IRS agents to make inquiries
about your return: illegibility!
* REQUEST IRS PUBLICATION 17. "Your
Federal Income Tax" is an excellent source of
information on how best to prepare your tax return.
You may find it so informative that you won't feel
the need to buy any other tax-preparation guides.
* MAKE A CHARITABLE DONATION of
stock that has appreciated in value, rather than
giving cash. If you donate stock that has
appreciated in value to charity, you get a deduction
for the current market value of the stock - thereby
avoiding any capital-gains tax. This is an attractive
money-saving maneuver that is far better than
donating an equivalent amount of cash.
* KEEP A RECORD of all cash charitable
contributions that you make. If you are like most
people, you make a "guesstimate" of your cash
charitable contributions when tax time rolls around.
Unfortunately, even if you have underestimated the
amount of your contributions, the IRS is wary of
unsubstantiated deductions. So keep a lot or diary
of your cash contributions. Better yet, make all but
your smallest donations by check.
Tips courtesy of FamilyCorner.com Magazine -- http://familycorner.com
May be printed for personal and educational purposes only.
Copyright © 2005, FamilyCorner.com Magazine, Inc. All Rights Reserved
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