| Yes, its that time of year again, time for every financial | | | | the tax will be due April 16th, 2007. If you wait until |
| column to drum into your head all the year-end | | | | January, the tax won't be due until April 15th, 2008. You |
| investing tax tips. It's the equivalent of your list to Santa. | | | | decide. |
| You either take care of it by year-end or you take | | | | Maximize Your 401(k) Contribution - You know this |
| your chances. Consider yourself warned. | | | | was a New Year's Resolution last year! December |
| Take Your Losses - Losses are never a thing of | | | | 31st is the final day to make good on it. |
| beauty, but they can become palatable at this time of | | | | Fulfill Charitable Pledges With Low Tax-Basis Stock - |
| year. Even if you're convinced that the paper loss is | | | | Why give cash when you can siphon off some of that |
| only a temporary situation, you should still consider | | | | ExxonMobil you've owned for 20 years? You can |
| selling. You can buy the position back in 31 days to | | | | claim a deduction for its full value - not simply what |
| avoid what's called a "wash sale." | | | | you paid for it - and avoid the capital gains tax as well. |
| Netted out against long-term capital gains, you can | | | | Of course if you're thinking about giving away stock |
| claim $3,000 of long-term capital losses on your | | | | with a tax basis higher than its current market value, |
| current income tax return, with the remainder being | | | | think again. Here, you're better off selling the stock, |
| carried forward into future years. | | | | taking the loss, then giving away the cash. |
| Check With Your Mutual Funds for Long Term Capital | | | | Donate To Charities Directly From Your IRA - New |
| Gain Distributions - Many Mutual Funds make long-term | | | | Law Alert! In the years 2006 and 2007, you can |
| capital gain distributions before the end of the year. | | | | donate up to $100,000 to your favorite charity directly |
| Even if you reinvest them back into the mutual fund, | | | | from your IRA. This is only available to those individuals |
| they are still taxable distributions. By calling the mutual | | | | who are at least 70 ½ years of age. |
| fund company (or your broker), you should be able to | | | | If 70 ½ Or Older Make Sure You've Made The |
| get at least an estimate of what those distributions will | | | | Required Minimum Distribution From Your IRA - |
| be. | | | | Distributions from Individual Retirement Accounts |
| If there are distributions, go back and read the tip about | | | | (IRAs) must be made by year end. Make sure you've |
| losses. | | | | included all your accounts in calculating your minimum |
| Defer Capital Gains - If you can defer taking your | | | | distribution. Mistakes can often occur if you transferred |
| capital gains until January, do it. If you take them today, | | | | IRA accounts during the year. |