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As the end of the year approaches, the following simple tax tips can keep taxes as low as possible.
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- Charitable gifting. Charitable donations may be used as deductions against your taxable income. However, all charitable donations must be supported with written receipts unless under $250 in which case a bank record is sufficient. Also, donations of services or your time are not tax deductible.
- Gifting in general. Each individual may gift up to $13,000 per year to an unlimited number of individuals without filing a gift tax return. Any gifts over $13,000 per year reduce the lifetime gift tax exclusion of $1,000,000. Once the lifetime exclusion is exhausted, gift taxes must be paid.
- Pay property taxes early. Real estate taxes are deductible. For taxes due early next year, if you pay them this year, you can use them as a deduction.
- Sell poor performing securities. Losses can be offset against gains reducing any capital gains. Excess losses can be deducted, but only up to $3,000 per year.
- Increase retirement plan contributions. Retirement plan contributions reduce taxable income.
- Increase business expense purchases. Purchases of business equipment, supplies, etc.,
According to figures from the U.S. Census Bureau, there are 2.1 million adopted children and 4.4 million stepchildren of householders as estimated from the Census 2000 sample. Together, these children represented approximately 8 percent of the 84 million sons and daughters of householders in 2000.
In 2008, the IRS amended Code Section 152(e), the section which addresses the subject of the child dependency exemptions for divorced or separated parents. The old rule and procedures have been changed dramatically.
Considering a multitude of differing perspectives and insights helps me to better hone my skills as a divorce lawyer. What I see and hear every day is rarely black or white, but a rainbow of shades of gray. One way of broadening my viewpoint is to read all sorts of blogs each week, an activity which I totally enjoy! Consistently, one of my favorites is Michael Mastracci’s Divorce Without Dishonor Blog. Mike is an excellent attorney from Baltimore, Maryland. His own difficult and acrimonious divorce and child custody battle led to his personal interest in collaborative family law. Attorneys and clients both should include his blog on their frequent read list. Mike regularly espouses ethical, moral and philosophical standards that we should aspire to meet. I have personally and professionally been a proponent of child welfare issues for over 30 years. So, when I read his recent post about “What We Are Teaching Our Children of Separation and Divorce,” I had to ask Mike if I could have his permission to republish it. He kindly agreed. Here it is:
The legal analysis posted last week on this blog by Daniel Pollack discussing legal immunity for children services social workers was comprehensive and well done. A review of Ohio federal cases on point is very interesting and enlightening.
It is an accepted principle that a parent has a constitutionally protected interest in the custody and care of his or her child. This interest does have exceptions, especially when the child may be in immediate or apparent danger. This is when child protection services gets involved. Crucial to every child protection investigation is to establish the facts and circumstances of the case. When these are presented to the court at a dependency hearing, the evidence may become proof.
For many parents contemplating a divorce or dissolution of their marriage, a primary concern is which parent shall have “custody” of the child or children of the marriage. I shall begin the article by addressing the differences between the two parenting systems in Ohio – “sole custody” and “shared parenting”.