Reducing Your Taxes Communicating with your Accountant/Tax Preparer must not stop after your taxes have been filed.  There are so many event changes that can affect your tax liability, such as:          EVENT                               TAX IMPACT   1.  Marriage                            Increase liability depending on                                               your income  2.  Increase in Income             Lose tax credits that are subject                                                 to AGI 3.  Decrease in Income            Claim tax credits that are                                               subject to AGI 4.  Rental Property Loss           Cannot claim in current year if                                              AGI is high 5.  Divorce                              Dependency exemption based on                                               child custody 6.  Employee Stock Options      Lower tax rate on appreciation if                                               elected 7.  Severance Pay                    Lump sum will increase your tax                                                 rate 8.  Inheriting IRA                     Continued tax-free accumulation                                               amount 9.  Gifts in excess of exclusion  Part of your estate and subject to                                               45% tax 10. Claiming Dependents          Dependency exemption subject to                                               dependent's income 11. Mutual Funds                     Timing of purchase can lower tax                                                rate 12. Home Improvements          Install certified energy efficient                                                  products for possibility of credits 13. First time home purchase    Possibility of tax credit    14. New Cars                           Purchase the right model for                                               numerous credits 15. Gifts to grandchildren          Subject to double taxation: gift                                               and GST   The possibilities for tax savings are better if planning is done early before the end of the year.  After December 31st strategies to reduce taxes are limited.  If planning properly there are ways of reducing your Adjusted Gross Income (AGI) to be eligible to deduct rental property loss and utilize tax credits, especially if you have children in college.   Now is the time to get in touch with us for tax planning to take advantage of tax law changes and minimize your 2009 tax liability.  This is not limited to your individual tax returns but is also available for your business returns.  We can also do estate planning for you to minimize the 45% estate tax so your loved ones will receive more than Uncle Sam.