2011 - Individual Tax Planning Suggestions

·         Medical Expenses – Deductible when paid

·         Taxes – May want to prepay state taxes if you will owe

·         Taxes – May want to prepay your property taxes due in February

·         Mortgage Interest - May want to prepay your January mortgage payment in December      

      ·         May deduct mileage at 14 cents per mile

• Must have backup for non-cash contributions over $500.00

·         Depreciation

      ·         May deduct up to $500,000 of new equipment for Federal purposes

    ·         Cars are limited to $11,060 of depreciation in the first year

•   Bonus 50% depreciation is back and extended for 2011

·         Auto expenses

     ·         May take either actual expenses or mileage at 51 cents per mile

     ·         Once you elect a method, you are married to it for the life of the asset

·         Pension Plans

    ·         SEP IRA limits up to 20% of income with a maximum contribution of $49,000

    ·         Traditional IRA’s up to $5,000 and if over age 50 up to $6,000

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