Summer is here, and it's time to take action on your midyear tax planning to-do list. Here are three suggestions to get you started:
1. Review your estimated tax payments.
June 15 is the due date for the second installment of your quarterly personal and calendar-year corporate 2007 estimated tax payments.
Make sure the amount you calculated back in April is still correct. If you think you'll be over- or underpaid, adjust your estimate accordingly.
2. Take advantage of expiring accelerated depreciation benefits.
A tax bill passed last December extended the special 15-year straight line depreciation method for certain leasehold and restaurant improvements - but only through December 2007. After that, the recovery period reverts to pre-Act rules of as long as 39 years.
Plan to get these projects underway now so you can have them in service in time to qualify for the faster expensing.
3. Maximize the hybrid vehicle credit.
According to the IRS, more than 40 models of hybrid vehicles are certified for the tax credit, which can be as high as $3,400 and is available through 2010.
There's a catch, though - the credit begins to phase out after a manufacturer sells a certain number of the vehicles. For some models, that requirement means you'll get no tax benefit after October 1, 2007. If you intend to buy a qualifying vehicle, now's the time to begin shopping.
June is the perfect month for a midyear strategy session. Give us a call. We'll help you check more tax-saving ideas off your list.
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