Smart Year-End Money Moves ’08 (Part 1)

By on

This is the time of year when most of us spend a lot more time thinking about tree-trimming than tax-trimming. But year-end is a time when you really should do some planning.

Every year we sit down with a tax pro for predictions on the year ahead and tax tips. Here was the prediction he gave us last year at this time:

“The general feeling right now is that taxes are going to go up. Probably going to have an increase in capital gains tax rate, may have a tax on the rich to pay for some of the deficits we’ve had over the past couple of years.”
-Ken Strauss, CPA / Berkowitz, Dick, Pollack & Brant 

Our expert said that last November; Barak Obama has been saying it ever since…and it might just happen sometime in 2009.

“What we think is gonna happen is that the Bush tax cuts will be repealed. In other words, the top rate of 35% will probably go up to 39 and a half percent.”
-Ken Strauss, CPA / Berkowitz, Dick, Pollack & Brant

But that’s for people in the highest brackets. If you’re not quite there yet, despite what the Republican campaign ads said, your taxes probably won’t rise in 2009.

“If you make $50,000 or less, I think you can feel pretty secure that your taxes are going to either remain the same or be reduced.”
-Ken Strauss, CPA / Berkowitz, Dick, Pollack & Brant

And predictions like this matter, because they affect your planning. For example, if your bracket is going up, you might want to take stock gains this year… at least if you have any.

So that’s step one in year-end tax planning: thinking about what’s ahead. But that’s just the tip of the iceberg.

Watch Part 2 of this series

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,372 more deals!

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.