Money Talks News

Smart Year-End Money Moves ‘08 (Part 2)

Posted on 26. Dec, 2008 by Money Talks News in Taxes, Video

It’s hard enough to think about income taxes in April, much less during the holidays. But a few minutes spent now could be worth serious money when tax time comes.

For example, did your life change this year? If so, talk to a pro.

“You got divorced, had a child… what kind of tax savings can I get from the child. Can I put money in the child’s name, can I put money aside for their college education?”
-Ken Strauss, CPA / Berkowitz, Dick, Pollack & Brant 

That’s why you talk to a pro before year-end: things you do now can help next April. Another example? Your IRA was trashed by the market. Well, maybe now’s the time to turn it into a Roth IRA…

“You’re allowed to convert a regular IRA to a Roth IRA. In other words, convert a taxable income IRA into a never-taxed income IRA. And you can do that now at a low cost because the value of your portfolio is down.”
-Ken Strauss, CPA / Berkowitz, Dick, Pollack & Brant  

And if your stock losses aren’t in an IRA, be sure to sell them before year-end so you can get that write-off…

“The one thing that’s really important is to make the best use of the losses that you’ve incurred. Now is the best time to harvest those losses.”
-Ken Strauss, CPA / Berkowitz, Dick, Pollack & Brant  

Bottom line? Year end financial planning is all about seeing where you are right this second and seeing how you can improve your situation later. So spend a few minutes today, maybe save some serious bucks next year. 

Watch Part 1 of this series

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Tags: end of year, new year taxes, planning your taxes, saving money, saving money on taxes, Taxes, year end tax planning