Planning is the key to a successful tax strategy. Since changing tax laws can offer new methods for saving and often impose new restrictions and requirements, it's important to make adjustments to your plan each year. Here are some of the latest techniques for developing a tax advantaged approach to managing your finances.

• Rescue Act includes Tax Breaks for Individuals and Businesses
  The Emergency Economic Stabilization Act addresses the US credit crisis, extending and expanding many tax breaks that were due to expire this year.
  
  
• Timing & the Alternative Minimum Tax
  Review your income and deductible expenses prior to year-end to minimize your tax liability.
  1. Congress Increased the AMT Exemption for 2008
  
  
• Executive Compensation
  Compensation in the form of non-qualified deferred compensation plans, stock options or restricted stock present unique tax challenges for executives and other key employees.
  1. December 31, 2008, is the Deadline for Companies to bring NQDC Plans into Compliance w/Final Regulations
  
  
• Tax-advantaged Investment Strategies
  Timing can have a major impact on the tax consequences of investment decisions.
  1. New Capital Gains Tax Law Reduces to Zero the Long-Term Capital Gains Rate for Lower Income Groups
  
  
• Charitable Giving
  Giving to charity provides opportunities for sizable – and controllable - tax deductions. Well-planned gifting techniques can save estate taxes, too.
  1. Charitable Remainder Trusts can Reduce Single-Stock Exposure Risks
  
  
• Education Funding
  Special tax breaks, credits and investment plans are available for your children's or grand children's education – including options that begin as early as elementary school and go through to post-graduate education.
  1. Kiddie Tax Now applies to Children 18 and Younger
  
  
• Retirement Planning
  Most people will need to supplement Social Security and company sponsored plans to maintain their lifestyle at retirement. Individuals and business owners each have unique considerations.
  1. Take Advantage of Catch-Up Contributions if your’e 50 or Older
  
  
• Estate Planning
  Careful monitoring of estate, trust and gifting strategies can ensure a timely plan that maximizes your wealth and reduces your tax liability for future generations.
  1. Prepare for a Repeal of the Federal Estate Tax in 2010
  
  

Disclaimer: Any US tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

The content of this transmission does not constitute a professional service. Always consult with a competent professional service provider for advice on tax, accounting and other financial matters specific to your situation. If you wish to engage our firm for this purpose, please contact our office.