2007 Tax Checklist
- Maximize deductions, especially charitable contributions to Hamilton, and postpone income.
- Review requirements of “qualifying” dividends before selling securities.
- If you do not itemize deductions, you might benefit by doubling your annual charitable contributions every other year, allowing you to itemize in years you make gifts without affecting the standard deduction in the other years.
- If you have stocks that are down and do not have much confidence in their future performance, consider selling to realize a loss that can be used to offset otherwise taxable gain. If your loss exceeds your gain, you can deduct up to $3,000 of loss against ordinary income, and any excess can be carried forward into future years.
- If you wish to adjust your portfolio, consider transferring some appreciated assets to a charitable gift annuity. You will pay no capital gains on the initial transfer. The income tax deduction may offset the tax due on the sale of securities outside of the charitable gift annuity.
- Provide for the financial security of your child or grandchild by establishing a Roth IRA for each one who is gainfully employed.
- Use all tax-advantaged retirement savings opportunities.
- Tax managed mutual funds in a traditional account are an attractive alternative to a non-deductible IRA.
- Through Dec. 31, 2007, donors over the age of 70 ½ may transfer IRA assets directly to Hamilton.
- Charitable gift annuities allow donors to lock in the value of appreciated securities while receiving fixed payments for life.
You are encouraged to consult your tax advisors about your own situation.