End Of The Year Looms; Time To Check Taxes

PALM DESERT -In the middle of the holiday hustle and bustle, tax time might be the last thing on your mind.

But it shouldn’t be.

There are just 2 weeks left in 2009, and there are still some money saving opportunities out there before the calendar flips.

Raphael Tulino with the IRS says as the year comes to a close you should consider credits for big purchases like cars, homes, and electric plug-in vehicles.

Plus deductions for investment losses or charitable contributions.

Charitable giving is usually up this time of the year, and if you are looking for the write-off then it’s always a good idea to keep a paper trail and know who you are giving too.

“Always consider giving to a qualified public charity, something you know,” Tulino says. “So you know its legitimate and when you put it on your return that you can take advantage legally.”

There are lots of tax provisions available this year thanks in part to the recovery act passed in February.

That includes the first-time home buyers credit that was extended until April 2010, and expanded to include some home buyers who already have owned a home.

Time is running out for car buyers who want to deduct the sales tax of their purchase.

The tax deduction incentive runs out 12/31/09.

“If you are considering a new car, you might be able to drive off with some savings so to speak by buying the car here in ’09, and deducting that sales tax from the purchase, up to $49,500, next year in 2010,” Tulino said.

There are also tax incentives available for going green in your home, like replacing doors and windows.

But even if your not going to advantage of the tax incentives, a little prep work now can literally pay off at tax time.