Yearend Tax Planning Tips SOME NEW STRATEGIES... - Consider signing up with a participating insurer to set up a medical savings account. These new tax-advantaged health plans become effective Jan. 1, 1997, for up to 750,000 people who are self-employed or work for small companies. - Limit 1996 retirement plan withdrawals to $155,000, taking your excess distributions over the next three years, when they won't be subject to a 15% excise tax. - Wait until 1997 to complete an adoption if you think you'll be eligible for a new tax credit to cover adoption expenses. ...AND SOME OLD STANDBYS - Take capital losses to offset capital gains and up to $3,000 in ordinary income. - Donate appreciated property such as stocks to charity so you can deduct the current value and avoid a capital-gains tax. - Accelerate deductions such as property tax payments into 1996, but watch out that you don't trigger the alternative minimum tax. - Hold off investing in a mutual fund until it makes a capital-gains distribution for the year. - Defer bonuses to next year, especially if you are in the same league with Wall Street hotshots looking at a huge payday. Return to main story

Updated June 14, 1997 by bwwebmaster
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