Tax day is April 15th 2012 and there are still things you can do to maximize your refund this year and in the future.
Bernie Kent from Telemus Capital Partners breaks it down.
For this Tax Season:
· Take full advantage if IRA's including Roth's.
· Still can take deductions for 401K , SIMPLE or SEPs contributions made in 2013 for 2012
· Look at which family members can take deductions that are based on income threshold limits ( careful of Kiddie tax)
· If you are a small business owner coordinate your personal and business tax returns to the extent available
· Possibly look at ways to push income from 2013 back to 2012 if your tax bracket was lower in 2012
· Itemized deductions could be limited in 2013 so see if any way to claim them in 2012 instead
· Look at income deferral/ avoidance products such as 529 plans, Health Savings accounts,
· IRA charitable giving versus Direct
· Donating appreciated property ( avoid selling and taking capital gains)
· Consider transferring assets to children directly or even using AFR low rate based loans
· Consider low rate home equity loans to pay off nondeductible higher interest rate debt ( student loans etc.) depending on the situation and limits
· Asset location ( as well as allocation) are critical given higher investment income rates
Planning going forward ( be aware tax reforms and changes might not be over)