Welcome to the blog for Tarpley & Underwood Financial Advisors. While you will see some historical entries on the site from when we were testing the medium, today is our official launch date for what we anticipate will be a near daily opportunity to comment on some of the financial issues of the day and a point from which to reference financial resources which will be helpful to not just clients of the firm but to those who are interested in wealth management issues.
It seems appropriate to "launch" this site with some tax planning notes.
As we are now in the fall season which is a prime time to focus on year end planning, we will review some of the tax planning opportunities that now present themselves and in some cases will soon be gone:
1. Direct Contributions from IRAs to Charities.
2007 is the last year charitable contributions can be made directly to a charity from an IRA. You do not get a deduction for the contribution, but you also do not have to include the IRA distribution into taxable income. This approach will typically yield a positive tax result if you are charitably inclined. The major caveat to this strategy is that it can only be used by IRA account holders who are over age 701/2.
2. Energy Efficient Home Improvements.
The $500 lifetime credit for new energy efficient exterior elements and systems is due to expire at the end of 2007. If you have any energy-saving home improvement projects planned, it would be to your advantage to complete them before the end of the year.
3. Tax Deduction for Educators Purchasing School Supplies
Qualified educators who pay for school supplies out of their own pocket can deduct up to $250 of the cost. This deduction will expire at the end of 2007.
In the next post we will review three more tax savings opportunities.
Labels: taxes