Just remember that now is the time to discuss with your broker ‘tax harvesting’. This is the process of matching capital losses to capital gains at the end of the year to wipe out capital gains taxes. Talk to your financial advisor now about whether you have a capital gain for the year, either through capital gain distributions in your mutual funds or through sales of stock or mutual funds throughout the year. If so, have him/her identify any assets you can sell at year end to generate capital losses to offset those gains. If you have a stock with a loss you don’t want to sell, sell it anyway to get the losses, then buy it back in 32 days, otherwise the wash sale rules apply.
Brian’s Misc Musings
This week my daughter Kirsten is in her winter choir production on Tuesday and Wednesday which my wife and I are helping at. She has been doing a great job and we are really looking forward to it. Then Saturday night she is going caroling for a fundraiser for her choir. Lots of fundraising for their productions but it is worth it to see her perform.Also remember that in 2010 if you are a sole proprietor or single person LLC that you can deduct your health insurance for self employment tax as well as income taxes. This is a change from the past when it was only a deduction for income taxes, not the approx 15% SE tax. Something good for self employed people.
Brian’s Tax Musings (cont’d)
Just saw the IRS standard milage rates for 2011They are 51 cents a mile for business travel (up from 50 cents in 2010) 19 cents a mile for medical and moving (up from 16.5 cents in 2010) 14 cents for charitable activities (this doesn’t change – passed by law)So break out the champaign – lots of additional tax deductions for 2011 (sure!)