Small business owners that are calendar year, cash-basis, taxpayers should consider paying all of their outstanding bills this month so that a deduction may be taken on the 2009 returns. You may even pay bills now that are not due until after January 1st and take the deduction for 2009.
If a small business anticipates needing to purchase equipment in early 2010, why not buy it this month if it will qualify for the Section 179 deduction? This will allow a deduction for tax year 2009 and will help boost the economy a few months earlier!
Likewise, individuals that itemize deductions should consider making any charitable contributions, paying off medical bills and making any state estimated tax payments (that would otherwise be due in mid-January) before the end of the year. This will enable the deduction for 2009.
As always, please consult with your tax professional to make sure these strategies makes sense for your own tax situation.
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