You still have some time in 2014 to take steps that will beneficially affect your tax situation. Here are my top ten.
1. Clean out your closet and basement and make donations to Goodwill. Keep the receipts and a record of items donated. You can value the items using the valuation guide at salvationarmyusa.org.
2. Organize your 2014 tax documents and receipts for deductions in one file folder. Summarize the receipts and give the totals to your tax preparer. In general, do not send the receipts to your tax preparer.
3. If you have a business on the cash basis, delay mailing bills until late December so that payments won't be received until 2015.
4. Write a check to your favorite charity or donate appreciated stock. Be sure to get an acknowledgement letter from the charity for donations of $250 or more.
5. Consider converting your regular IRA to a Roth if you can do so without increasing your taxes. This would apply if you have enough itemized deductions or net operating losses to offset your taxable income after the increase from the Roth conversion.
6. Invest in Georgia municipal bonds or other state and local bonds. The interest is tax free from both federal and state tax if you invest in bonds from your state of residence. Municipal interest is tax free from federal tax regardless.
7. Sell investments that will generate losses to offset any capital gains plus $3,000.
8. Buy supplies and equipment for your business before year end. Pay January rent in December.
9. Estimate your volunteer mileage for the year.
10. Increase your retirement plan contributions to the max.
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