Real Estate Insights

If you act quickly, you may still be able to take advantage of tax-saving benefits that can help reduce your 2007 tax bill. You have 15 days until the end of the year to lower your taxable income by maximizing deductions, or taking advantage of tax credits. Tax deductions are subtracted from you income, while tax credit are subtracted directly from the amount of taxes due.

Estimate what you think you'll owe based on your 2006 income taxes. Did you make more money this year? How did your investments do? Maybe this is the year you itemize deductions. If you see a significant change in your tax bracket, it's time to do a little homework.

One of the best ways to lower your taxes is to put more of your savings into a tax-advantage retirement plan. Workplace accounts may help you lower your tax liability. The maximum pre-tax contribution you can make for 2007 is $15,500, or $20,500 if you're age 50 or older. Note some employer plans may have lower limits. If you haven't reached the maximum and you have the extra cash to invest, increase your contribution before December 31.

Time is running out on several popular tax credits. Credits for energy-efficient home improvements are set to expire soon. Adding insulated windows or qualified solar panels or solar water heating equipment can save you a substantial amount. So, if you've been thinking about doing any home improvements, think energy-savings, and do it now.

There are many ways to keep more of your hard-earned money. For example, don't postpone medical visits until next year if your threshold for medical deductions is almost met.

For more ideas and tips, it's always wise to get professional advice, so call your tax preparer or CPA, but you better hurry. And if you are not currently working with a CPA or don’t know of any , don’t hesitate to ask, as I can provide some good recommendations.