With the year drawing to a close, a lot of people are thinking about year end tax moves , including myself. In general, there aren’t many year end tax moves you can make on December 18th. If you’re going to buy a house and take advantage of the home buyer tax credit, you would’ve started the process by now. If you wanted to buy a car, while it’s certainly not a terrible time to buy, it’s not terribly likely you’ll be able to do an in depth search, especially with the holidays getting in the way.
However, there are a handful of steps you can take and my favorite of them all is to pick out a few charities to support. You have to be sure to follow the documentation rules for tax purposes but it can pay dividends both financially and spiritually. I won’t get into the mechanics but each year we donate some money to a half dozen charities we’ve supported in the past and find a few new ones to support on a smaller level.
Anytime you can give, whether it’s time or money, the organization benefits. It can be $10, $100, or $1,000 but the important part is to remember those who are working hard to provide more good in this world and help support them when you can.
What’s your favorite year end tax deduction? If it’s charitable giving, what organizations do you support and how? It’s always fun to learn about smaller organizations doing great work at the local level.