It’s getting to that time again, that time to think about taxes. If you get on top of it now, you will save a lot of money come tax season.

Tax Tips: 7 Things to do before years-end

1. Flexible Spending Accounts: If you have money remaining that you’re about to lose, start making a few health appointments before the end of the year and save your medication receipts.
2. Retirement Contributions: Lower you taxable income by contributing to a 410(k) or 403(b) by December 31, 2008, or to a deductible IRA, SIMPLE IRA or SEP IRA by April 15, 2009.
3. Charitable Donations: You can deduct cash contributions you charged to a credit card in 2008 even if you don’t pay the bill until 2009, You can also include checks mailed by December 31, 2008. Be sure to get a receipt from the charity for any donation not made bu check or credit card. The charitable deduction for contribution of property is generally limited to lower fair market value (its value at a garage sale).
4. Mutual Funds: If you’re planning on investing a substantial amount in a mutual fund, visit the fund company’s web site to be sure you’re not buying shares before a big dividend in December. That would increase your income by the amount of the dividend, even if you reinvest it in new shares.
5. Stock Sales: Offset a large net capital gain this year by selling stock at a loss before year’s end. If you sell stock to generate a loss, remember that you must not buy substantially identical stock within the period beginning 30 days before and ending 30 days after the sale that generated the loss.
6. Cash Gifts: You can give up to $12,000 per person to any number of individuals without having to file a gift tax return (or $24,000 if you’re married and the gift is from you and your spouse).
7. Self-Employment Strategies: If you use the cash method of accounting, you can decrease your taxable self-employment income by delaying your December billings until January. You also can buy supplies and equipment at the end of the present year instead of the coming year. And you can set up a SEP IRA and deduct from your current year’s income contributions by the due date of your return including extensions).

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