7 LAST QUARTER STEP, TO LOWER YOUR TAXES

You can lower your upcoming tax liability by making the following adjustments during the last quarter in the year.

1. This year, employers may put up to $15,500 of their pretax income into a 401(k). Next year and the next, you will learn about the new and upcoming tax laws during this same period of time.

2. Will you be celebrating your 50th birthday by the end of the year? You can give yourself an extra $5,000 per year. Contributions for IRA, Individual Retirement Accounts are capped at $4,000 this year and for people 50 or older, $5,000 a year.

3. If you are self-employed or work as an Independent Contractor -- you can defer payment for your services until early next year. The best way to do this is to notify your vendor or client that you won't be billing them until late December. This way you can lower your income for 2007. (or in upcoming years)

4. Another tip that has been included in all the newspapers is to pay January's mortgage payment in December. Be sure your lender adds the payment to your Form 1098.

5. The old standard way to help lower your taxes is to make charitable contributions before December 31, 2007. This makes it easy for you to help those less fortunate have a good holiday. Be sure that you receive a written confirmation from the charity that your have provided cash, clothing, auto, etc, especially if the items are worth over $500.00. Some tax advisers strongly suggested that you include a qualified appraisal with your income tax return if the amount of the gift is over $500.00

6. Sell Loser Stocks to Offset Gains -- If you have stocks that are showing a loss - consider selling them to offset any gains. Be aware that these stocks may gain in value in the coming years.

7. Thing seriously about starting a legal home business. Think about what you love to do and what make you happy. Invest in learning materials, set up your office, plan your marketing, write your business plan -- keep good records of all of your startup expenses.

A home business is especially important to persons in a high income bracket with very few or no dependents or mortgage interest.

You can only report a lost on a home business for three (3) years before the IRS will question if you have a business or a hobby. So why not take advantage of this period of time that the IRS provides for new and small business owners?