Ah, summer. The perfect time for tax strategies!

Sure is hot.   Probably rain pretty soon.  Can’t wait to get away on vacation. Maybe it’s time for a nap.

Why would you even consider thinking about your taxes now?

If you don’t want to miss out on money saving opportunities, wake up: some of these tax breaks will be gone before you know it!

1. There’s a window of opportunity for estate planning.   If the value of your business interests, real estate or marketable securities has decreased, here’s one bright spot: transferring wealth now will be less costly from a tax perspective.  Also, there’s uncertainty about whether the current estate tax exemption ($3.5 million) will remain in effect for 2010.  Don’t kick yourself later on this one.
2. Some business tax breaks are scheduled to  disappear.  If you’re buying equipment, take advantage of Section 179 first year depreciation write-offs or 50% first year bonus depreciation – both change at the end of this year.  And don’t miss out on the five-year carryback period for net operating losses.
3. Need an excuse to get a new car?  2009 special programs give you tax breaks or cash back four different ways:   hybrid vehicle tax credit, lean-burn diesel vehicle credit, cash for clunkers, or just a new vehicle tax deduction that applies to most new car purchases.   All of these end by December 31 — some sooner!
4. Is now the time to buy your first home?  Home prices are lower than they’ve been in a long time.   The temporary tax credit for first-time homebuyers is extended through November, and some of the specifics on maximums and payback periods are even better.  Maybe now’s the time!

Learn more about these tax strategies– and three more — before it’s too late.