More Tax Tips and Tax Saving Ideas from Donahue & Associates

Here are some more tax saving ideas:

More Tax Saving Ideas

Invest in a Roth IRA. if you qualify, non-deductible contributions are limited to $5,000 per year, $6,000 if over 50 years old. Income phase out limits apply. If funds invested for five years are not withdrawn before age 59 1/2 withdrawal is totally tax-free. Further, there is no required withdrawal at age 70 1/2.
Roll your (old) IRA into a new Roth IRA. This makes you old IRA taxable. However, your IRA takes on characteristics of Roth IRA. No income limits in 2010.
Clean out your attic, garage or basement and donate usable items to charitable organizations. Fair market value of the individual items are deducible and cumulatively can be a significant amount. Receipt validates deduction.

Be sure to discuss these planning tax saving ideas with you tax professional. Donahue and Associates would be pleased to provide further information on any of the items discussed by simply contacting us.

We invite you to also check out more overlooked tax deductions and tax tips for business owners.