Away for the Holidays: Don't Forget About Taxmas

I will be away for the holidays and won't be posting again until Tuesday, January 2nd.  In the meantime, don't forget about the most lucrative holiday of all--Taxmas. 

Taxmas refers to accelerating 2007 deductions into the last week of 2006 (charitable contributions, business purchases, etc.).  At the same time, you can work to delay realizing 2006 income until the first week of 2007.  The net result is lower income and higher deductions for 2006.

This is especially helpful if you expect to be in a higher tax bracket in 2007 (and especially unhelpful if you expect to be in a lower one, when the opposite strategy should be employed).  Even if you are in the same tax bracket, though, you benefit from Taxmas by delaying the payment of the tax by another year, gaining on the time value of the money.

Here are some other good year-end tax tips from the folks at Bankrate.com.