CPAs’ year-end tax tips podcasts help consumers keep more of their hard-earned money

For More Information: Amy Johnson, Senior Manager, Public Relations E-mail: ajohnson@ohio-cpa.com 614.764.2727, ext. 341

(COLUMBUS, OH – December 12, 2008) – The current economy has many Ohians looking for ways to spend less and save more of their hard earned money.

The Ohio Society of CPAs has posted, “Year-End Tax Tips,” a series of five podcasts that consumers can listen to or download from its Web site (www.ohioscpa.com).

In each five-minute podcast, Mark Van Benschoten, CPA, a principal with Rea & Associates, Inc. in Dublin, OH, reviews steps taxpayers can take this month to realize tax advantages in the areas of real estate and mortgage, investment and retirement savings, and business expenses.

“Many people aren’t aware there are strategies they can implement before Dec. 31 to reduce their taxes for the year,” Van Benschoten said. “These podcasts are an easy listen, and explain some of the best opportunities for saving money.”

Here are just a few of the topics covered in the podcast series:

Prepay real estate taxes
The Housing Assistance Tax Act allows you to deduct state and local real property taxes even if you don't itemize deductions on your 2008 tax return. Pay your property taxes by Dec. 31, and you'll be able to increase your standard deduction by up to $500 (filing single) or $1,000 (filing jointly).

Pay deductible expenses early
By pre-paying certain 2009 bills in 2008, you may be able to write-off a deduction earlier. For example, when you pay your January 2009 mortgage bill on or before Dec. 31, 2008, you may deduct an extra month of interest in 2008.

First-time homebuyer’s credit
There's a new tax credit of as much as $7,500 for first-time homebuyers, depending on income. To qualify, the home must be the first you've owned in the past three years and it must be purchased after April 8, 2008, and before July 1, 2009.

Maximize your savings and contribute to your retirement plans
A contribution of up to $5,000 ($6,000 if you’re over 50) to a traditional IRA is tax deductible. Contributions to a Roth IRA are not deductible, but provide tax-free withdrawals later. In both cases, growth within the accounts is generally tax-free.

Realize gains on investments in which you have a low basis
The capital gains tax rate on qualified dividends and gains from sales of stocks, bonds, and other securities you've held for more than one year is zero if your 2008 taxable income is less than $65,101 (married filing jointly) or $32,551 (single).

Harvest your losses
As the Dow Jones Index fell this year, so did the value of many stocks in consumers’ portfolios. But there are tax advantages of the market downturn. By selling stocks with losses, you can offset capital gains and qualifying dividends that would otherwise be taxable. But to realize tax benefits, stock transactions must be complete before Dec. 31, 2008.

“Charging” your way to a charitable write-off
Donations charged to a credit card are deductible in the year charged, not when the payment is made on the card. Therefore, charging donations to your credit card before year-end enables you to increase your 2008 charitable donations deduction.

Second chance rebate
Many individuals were not eligible for the rebate checks distributed under the Economic Stimulus Act this summer.

When filing the 2008 tax returns, the taxpayer has a second chance to be eligible by meeting the income and liability parameters. Planning should be done before year end to meet the criteria for the 2008 credit.

To download the podcasts or listen online, visit www.ohioscpa.com. The Ohio Society of CPAs also offers a free CPA referral service for taxpayers who need professional assistance. To find a CPA in your area, call 1-888-959-1212.

The Ohio Society of CPAs, established in 1908, represents more than 23,000 CPAs in business, education, government and public accounting. The Ohio Society’s members not only meet statutory and regulatory requirements as CPAs, but also embrace the highest standards of professional and ethical performance. This is achieved through ongoing professional education, comprehensive quality review and compliance with a strict Code of Professional Conduct.

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