Some tips for reducing your taxes were recently posted in the RIS Media article “7 Year-End Tax Planning Tips.” The informative tips come from Ken Rubinstein of New York law firm Rubinstein & Rubinstein. Gifting money to children or others is the best way to reduce your taxable estate, if that is something you are looking to do. You can gift up to $13,000 per person and a husband and wife can even give gifts to the same people to help reduce their estate. Of course everyone isn’t in the position where they are desperate to give out money so there are other tips to help you keep your funds to pay for your future while still reducing overall tax liabilities. Since Congress is likely to change tax laws next year and income and capital gains taxes are supposed to rise, now is the time to make your tax changes whether you start to compare annuities or change up your 401k plan.
If you sell any property that has appreciated in value before the loss of capital gains treatment is in effect, you will avoid tax from Charitable Remainder Trust and other tax planning strategies. Prior to the government taxing your 401k, convert it to a Charitable Remainder Unitrust IRA. Take income this year rather that waiting until next year when taxes may be higher. Before any tax increases, plan ahead and take advantage of favorable tax treaties now. Look into the advantages of a Dynasty Trust that delays estate taxes for generations and protects assets. You can avoid capital gains taxes by contributing to a Charitable Remainder Trust. If you buy annuities with other assets, the capital gains on your annuities are not taxable and you can minimize the taxes on your assets overall. These and other tips from the article can help you save money on your taxes in 2011 if you take advantage of them this year.