Have You Hugged Your Money Recently?

The brokerage statements are piling up on the piano.  The bank statements, if you still get them by mail are over in that basket, unopened, and if you get them digitally, you haven’t even opened the email informing you that they are available. Yes, I know you say, I check my balance a couple times a day, balances are good, but it doesn’t have enough money management mojo.

Yes, you’ll attend to your money right after you come back from vacation.  But of course, when you get back from vacation you’ll find yourself right back in the swing of things at work, and so it’ll have to wait until

Tax Planning for 2009 Tip 422

New Car on the Brain?

If you purchased a new vehicle* after Feb 16th of this year, 2009 -- or if you plan to purchase one before January 1st, 2010 - you may qualify for a deduction of the state and local sales taxes paid on the vehicle, with a purchase price of up to $49,500.

You qualify for the deduction even if you do not itemize.

The deduction is phased out between $125,000 and $135,000** if you are an individual, and between $250,000 and $260,000** if you are filing a joint return.

You'll claim the deduction on your 2009 return.

This may be as good a time as any to satisfy your desire and help the economy out at the same time. Can you say win-win?

* car, light truck, motor-home, motor-cycle.

** your modified adjusted gross income (MAGI).

Charity Begins at Home.

Deducting Charitable Contributions at Tax Time.

Many of us do good during the year, making both cash and non-cash contributions to charitable organizations. We often forget however, that we are able to take a tax deduction for those items we donated come tax time. To do this, a little housekeeping is necessary.

• First off, to take the deduction, you must itemize your deduction on Schedule A. Your itemized deductions must exceed your standard deduction in order for it to be of greater benefit to you, than your standard deduction.
• The contribution must be made to a qualified organization, not to an individual, political organization or political candidate.
• The cost of games of chance, raffles or bingo cannot be deducted, and if you get merchandise or admission to an event in exchange for your donation you will need to deduct the fair market value of the merchandise or ticket price you received from the donation amount, to determine the dollar amount that can be used as a deduction.
• If you donate stock, it is generally valued at the fair market value.
• The old stuff from your kitchen or your linen closet that you wouldn't give to another family member does not qualify for a deduction. Donated household items and clothing must be in good condition to qualify.
• Written bank records or records from the receiving organization are required and should be retained. It should indicate what the donation was, the date it was made and the dollar amount of the donation. If your donation exceeds $250, the organization needs to indicate whether you received benefits in exchange for your contribution.
• If your total contributed property is greater than $500, IRS form 8283 will be required.
• If the value of your total contributed property is greater than $5000 IRS form 8283 will also be needed and items must be appraised by a qualified appraiser.
• You cannot deduct the time or value of your sevices, however you can deduct the items used while carrying out the charitable service.
• You can also deduct the miles driven to provide charitable deeds or donate products. In 2009, the rate is 14 cents per mile.

So keep doing good, keep good records and watch as your tax liability is whittled away.

Last Minute Tax Tips for Tax Year 2007

So you waited until the last minute to file your taxes, probably because you may have a tax liability, or maybe you are like many of us, simply a procrastinator. Well most transactions that could have helped you proactively lessen your tax liability had to be completed by December 31st, 2007, but you knew that, that’s why you will start planning for this year’s taxes right after you have filed the 2007 tax return, right?.

Tax Savings Tips [VIDEO]

Eisner's Tim Speiss on year-end tax planning tips that can help you reduce your tax bill. Watch the Video from Forbes.com.