The year is coming to a close, and before you realize it we will be in 2011. It is that time of the year where we need to look at out finances, and talk with out financial advisors on what we could do to take advantage of year end tax strategies.
With that said, today I will start a mini-series that will cover what one can do to maximize your returns for next spring. Successful tax planning is an ongoing process; there are definitely a few year end strategies that individuals and families should be considering as we hit the end of the year.
The first tip to be shared is easy, all you have to do is spread some joy.
As many of you may know, December 31st, is the last day one can make a donation and get a tax receipt for 2010. Keeping that in mind, you can gift publicly traded securities, mutual funds or segregated funds with accrued capital gains to a registered charity. This will entitle you to a tax receipt for the fair market value of the security or fund that is being donated. This also eliminates capital gains tax as well.
By making a donation, you can not only maximize your return for next year, but you can also do a good deed for the charity of your choice. Remember, if you do decide to make a donation, be sure to make it before December 31st as you can get the tax receipt needed when you file your taxes next year.