Race to 2009

Now that Christmas is over, most of us are off work until January 2nd. Unfortunately, with the downturn of the economy, many people will be off work for an unknown period of time.

This ‘lull’ is the time of year that many people realize they need to act quickly to line up as many tax deductions as they can before the clock strikes midnight on December 31st.

It’s too late to give birth to a child that would provide another exemption… unless the couple did some advanced planning. Of course, with the time off work, couples could start working on the 2009 tax year.

Depending on how you are paid, you could defer some income into 2009… and hope your tax rate doesn’t go up next year. If you have investments, you might want to sell stocks at a loss (easy to do right now) and reinvest those dollars in something that looks more promising.

Or, you could make some last minute charitable contributions. The last few days I’ve been encouraging people to donate to God’s Global Barnyard (see the link in my BLOG ROLL to the right), and I will continue to support this worthwhile charity.

Another thing my bride and I support is Mission Honduras. This is a charity that has virtually no administrative costs attached to their fund raising. Fr. Emil Cook went to Honduras many years ago and opened a school. He now oversees the operation of numerous schools, orphanages, and shelters. His basic belief is that the best path for people to escape poverty is education.

Much of his work (including fund raising) is done by volunteers. To learn more about Mission Honduras, click on the link in the BLOG ROLL.

I’m sure many of my readers have favorite charities of their own. I encourage everyone to donate as much as your budget allows. Individuals are not the only ones suffering from the bad economic conditions.

If you own a small business, this might be a great time to purchase new equipment or office furniture. Lots of things are on sale right now and you can write off the cost.

I figure over the next few months CPAs are going to really earn their money. For instance, how do we report the checks we received a few months ago that were supposed to circumvent these troubling times. Is that money simple regular income? Tax refund money? Capitol gains? (Capitol – as in Washington D.C. as opposed to capital – investments.)

And what if the government gives us more money? They seem to have no trouble giving it to everyone else. I, for one, would love to have some of my tax dollars back.

Maybe it’s time to give the Fair Tax the consideration it deserves. (Yep! That’s one of my links too!)

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2 Responses to Race to 2009

  1. I doubt the government will give us more money in 2009, but I am optimistic that the economy will turn around, along with the stock market, and the unemployment rate will eventually go back down.

  2. jimsjourney says:

    Mike,

    I agree with you completely. I’m very optimistic… especially in regards to the stock market. For years I’ve been told to buy low and sell high; well, this is the best chance I’ve seen in my lifetime to buy low. There are some unbelievable bargains just waiting for someone to buy.

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