Best to Maximize or Minimize Deductions?

by Lee Reams in Tax Planning

As the end of the year approaches, it's a good time to review your potential tax deductions and develop a strategy that maximizes the benefits. Most taxpayers may deduct the higher of two amounts from adjusted gross income when figuring their taxable income. These amounts are either a fixed amount set by law (the “standard deduction”) or a listing of the expenses the taxpayer paid during the year that the government allows (known as “itemized deductions”). Read More

Proposals and Expiring Benefits Impact Long-Range Tax Planning

by Lee Reams in Tax Planning

When it comes to taxes, it seems that planning ahead has almost become an impossible task. The only thing we can really do is to stay informed and keep track of the latest changes.

Long-range income-tax planning for individuals has always been challenging, what with the steady stream of changes and last minute action by Congress. This year, it goes to an all-new level taking into account the sunset provisions for many current benefits – those provisions that were enacted with a specified ending date – and the President’s 2011 budget proposals. Read More