JONESBORO, AR (KAIT) - When the clock strikes midnight December 31st, folks will ring in the new year. But, before that time, there are some last-minute tax tips you might want to consider to ring in happy tax deductions.
Whether an individual or a business, we are all looking for ways to get the most bang for our buck. In nearly 2 weeks, folks will be saying hello to 2011, but Michael VonDran with H & R Block says before you wave goodbye to 2010, you might want to consider some of these last-minute tax tips.
"One of the biggest things they could do is take advantage of the energy credit that will be expiring Dec. 31st. It's for non-business energy," says VonDran.
Energy-efficient purchases such as storm windows and outside doors, water heaters, central air and heating units, even installing a metal roof can not only earn you a tax credit but save you money in the long run.
"They did extend the non-business energy credit, but it's only for 500 dollars, which is why it would be good for you to take advantage of the one that's in place right now," says VonDran. Depending on the cost of the home improvement, you could get a 30% deduction up to 15 hundred dollars.
The holidays are a perfect time for giving...and receiving a tax deduction. Donating to a charity is one of the most recognized tax deductions you can make. "Make sure you keep some kind of receipt showing that you paid that, because some places will not give you something stating how much you gave," says VonDran. He also says a canceled check or credit card statement should also suffice.
If you own a small business, the Section 179 depreciation deduction maybe something else to consider. "It allows you to completely write off any equipment that you buy for your business," says VonDran. Allowing a business owner to write off up to 500 thousand dollars. "That includes computers, if it's a restaurant it could be ovens things like that," says VonDran.