| BUSINESSWEEK ONLINE : NOVEMBER 29, 1999 ISSUE | ||||||||
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| BUSINESSWEEK INVESTOR
Yearend Tips POSTPONE INCOME Unless you think your tax bracket will be higher next year, see if your employer can defer yearend compensation and bonuses until 2000. If you're self-employed, put off yearend billings. If you have stock options, you may wait to exercise them in January. ACCELERATE INCOME But if you think your bracket will rise next year, try to get your bonus in 1999. If you're getting hitched in 2000, you may get hit with a big marriage penalty, so you may be better off taking income now. GROUP YOUR DEDUCTIONS Try to load costs into one tax year. Say your medical bills in 1999 are close to 7.5% of your adjusted gross income (AGI), the threshold for deductibility. If you're planning elective surgery, maybe have it before Dec. 31 to qualify for the deduction. Same with miscellaneous deductions, which have a threshold of 2% of AGI. GIFT TIME If your assets are over $675,000, reduce the potential estate-tax liabilities by giving away, tax-free, up to $10,000 annually to each of your kids or other family members. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Early Steps to Ease the Taxman's Bite TABLE: Yearend Tips Commentary: No, Yearend Investing Isn't a No-No INTERACT E-Mail to Business Week Online | |||
