Mike
Carruthers:
At the risk of spoiling your mood as we approach the end of the
year, you should be thinking about tax planning. And there have
been some changes in the tax law.
Barbara Weltman:
In 2007 in order to deduct any donations to charity (regardless
of amount), you must have either a cancelled check, a bank record
or a detailed receipt from the charity.
Attorney Barbara
Weltman, author of the book
J.K. Lasser's Your Income Tax 2008…
In the past,
if you kept a diary, say, noting that every week you put twenty
dollars into the collection box - that was sufficient and would
give you the deduction. Now the tax law requires proof.
There's another
important change in the tax law this year…
There's a new
deduction for people who bought homes in 2007 and didn't put
twenty percent down and instead took out mortgage insurance.
They can treat the premium as if it were interest in effect
- and report it as an itemized deduction on schedule A.
If you're a homeowner
and you make certain energy improvements to your home before
the end of 2007, you'll be able to take a credit on your income
taxes in April.
So, if you were
planning to put in storm windows, well do it now. If you were
planning to insulate your home, do it now. Not only will you
save on taxes but also you'll save on home heating for the winter.
You can link
to Barbara's website
from ours: somethingyoushouldknow.net
- I'm Mike Carruthers and that's Something You Should Know.
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