Top 5 year-end money tips -, GA News Weather & Sports

Top 5 year-end money tips

(WTVM) - has a compiled a list of the Top 5 Year End Money Tax Tips for individuals and small businesses. 

Qualified equipment, including computers and software, can be deducted immediately up to $500,000 so take advantage of year end sales and get a full deduction for tax year 2010.

 1. Charitable Contributions. Donations must be made by end of day on Dec 31. Donations charged by credit card by Dec 31 are deductible for 2010 even if the bill is paid in 2011.  If you donate clothing or other items, make sure to get a receipt. If you have a stock that has gained in value, you can donate it and avoid capital gains tax and get a deduction.

2. Energy Tax Credit of up to $1,500.  The Energy Tax Credit provisions from the 2009 Recovery Act expire on Dec 31.  You can get a tax credit of 30% of cost up to $1,500 on Insulation, Windows & Doors, and Water Heaters.  Water heating can account for 14%-25% of the energy consumed in your home. Not all ENERGY STAR qualified products qualify for a tax credit. Units must have an Energy Factor greater than 0.82 OR a thermal efficiency of at least 90%.

3. Upgrade your equipment including computers and software.  The Small Business Jobs Act (SBJA) of 2010 increases the Section 179 limitations on expensing of depreciable business assets and expands the definition of qualified property up to $500,000.  In other words, you can buy equipment until Dec 31 and deduct it immediately instead of depreciating it over time.  For small businesses and sole proprietors, take advantage of year end computer sales on

4. Convert a Traditional IRA to a Roth IRA.  Until Dec 31, you can convert a traditional IRA into a Roth IRA and then split the tax payments between your 2011 and 2012 return.  Next year, the conversion will require you to pay the income tax up front as usual.

5. Pay your mortgage early on Dec 31. By making a mortgage payment early, you can get take the interest deduction for tax year 2010. The best place for free tax advice is the IRS itself.

For Individuals, 800-829-1040 Monday - Friday, 7am - 10pm.

For Businesses, 800-829-4933 Monday - Friday, 7am - 10pm.

For money saving coupons and a list of year end sales, visit


Additional Links:

Powered by Frankly