As we approach the year end, several key deadlines loom.  Here are just a few of them:

Charitable Deductions

Unless extended by Congress, the exception that allows an individual age 70 ½ or older to transfer up to $100,000 a year directly to a qualified charity  without including the transfer as income ends 12/31/09.

Gifting Strategies:

You can save gift and estate taxes by making gifts sheltered by the annual gift tax exclusion before the end of the year. You can give $13,000 in 2009 to an unlimited number of individuals ($26,000 for a married couple) You cannot carry unused exclusions forward.

Home Credit for First Time Buyer

You must close your 1^st time home purchase by November 30^th, 2009 in order to be eligible for this credit. The credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.  This is a dollar for dollar credit and is refundable, meaning that even if you do not owe any tax you will receive a refund check for the amount qualified.  There are several eligibility requirement including your Modified Adjusted Gross income must be below $75,000.

End of year Energy Saving Tax Savings

Energy saving renovations like windows upgrade and installing energy efficient heating systems like solar or geo-thermal  systems are eligible for certain federal tax credits.   For minor renovations like windows you may be eligible for a 30% credit up to $1500.   However, the installation of energy generating equipment  a credit of 30% without an upper limit.

Car purchase

If you are planning to buy a car, do so before year-end in order to nail down a deduction for state sales tax and excise tax on the purchase.

Roth conversion

If your Modified Adjusted Income is below $100,000 you may be eligible for a Roth conversion.  Next year the limit will be lifted and everyone regardless of income will be able to convert.   Please see prior posts for background information on Roth conversions.