Preparing Yourself for April with Financial Advisor Gary Garrison
By: KARK 4 Today
Updated: August 22, 2012
August may not exactly be a time when taxes are top-of-mind, but there are things you can do this month to lessen your tax bite next spring.
On KARK 4 Today Gary Garrison of Asset Protection Wealth Management shared tips for the other "A" month, April.
1. Check your charity:
People make donations to worthy causes throughout the year, but be careful if you're looking for tax benefits. Doing your homework in August can keep you from making a taxable mistake the rest of the year. Check the Internal Revenue Service website for a list of charity organizations or nonprofits that are eligible for tax deductible contributions at irs.gov.
2. Track your deductions:
We're already two-thirds through the year, and you've probably made purchases or spent money that's eligible for a write-off. A lot of people are not the best record keepers, but starting now will help you avoid a mad dash in April.
3. Convert while you can:
People with retirement funds are keen on sheltering them from taxes, and the extension of the Bush tax cuts may have an impact on yours as the year rolls on. One shelter you can still take advantage of this year is a Roth IRA conversion, where you roll your retirement account into a Roth IRA. This benefit is set to expire at the end of 2012, so August is a good month to get it taken care of.
4. Purge your bad annuities:
Annuities are common investments, and many people may find themselves "upside down" in one that's under performing. There are tax benefits to liquidating annuities that haven't done well. A variable annuity loss analysis and tax projection will help you make informed decisions about the topic.
Watch the video to see the full interview.
On KARK 4 Today Gary Garrison of Asset Protection Wealth Management shared tips for the other "A" month, April.
1. Check your charity:
People make donations to worthy causes throughout the year, but be careful if you're looking for tax benefits. Doing your homework in August can keep you from making a taxable mistake the rest of the year. Check the Internal Revenue Service website for a list of charity organizations or nonprofits that are eligible for tax deductible contributions at irs.gov.
2. Track your deductions:
We're already two-thirds through the year, and you've probably made purchases or spent money that's eligible for a write-off. A lot of people are not the best record keepers, but starting now will help you avoid a mad dash in April.
3. Convert while you can:
People with retirement funds are keen on sheltering them from taxes, and the extension of the Bush tax cuts may have an impact on yours as the year rolls on. One shelter you can still take advantage of this year is a Roth IRA conversion, where you roll your retirement account into a Roth IRA. This benefit is set to expire at the end of 2012, so August is a good month to get it taken care of.
4. Purge your bad annuities:
Annuities are common investments, and many people may find themselves "upside down" in one that's under performing. There are tax benefits to liquidating annuities that haven't done well. A variable annuity loss analysis and tax projection will help you make informed decisions about the topic.
Watch the video to see the full interview.
