Help is here, but you’d best move quickly! Don’t miss out on taking all the deductions and credits you deserve. In the world of taxes, a credit is better than a deduction. A credit reduces your taxes dollar for dollar.  A $1,000. credit cuts taxes by $1,000.! A deduction reduces your taxes by your tax rate percentage (a $1,000 deduction for someone in the 28% tax bracket cuts taxes by $280.).

Track your income. If you know where you stand, you may benefit by postponing your income until next year. By doing that, you may be able to take advantage of other tax breaks that are limited by adjusted gross income levels!

Direct more of your pay to your retirement account for the last quarter of this year which will help you reduce your current year taxable income.

You just might want to include installment treatment and trading property for another in a like-kind exchange. Keep in mind, this requires advance planning!

Adjust your investments before year end and take advantage of tax-saving moves. You can also apply up to $3,000. of capital losses against ordinary income, which can help reduce your tax bill.  Watch your holding period on your investments too. Gains on certain assets you’ve owned for more than a year are generally eligible for a favorable maximum tax rate of 15%.

Timing you investment purchases can also result in savings. You might want to wait to purchase shares in a mutual fund until after an expected year-end taxable distribution.

Be aware of “wash sale rules” when buying securities. When you replace an investment with a substantially identical one withing the 61-day period surrounding the sale, any loss is not currently deductible.

Review charitable giving. As of August 17, 2006, contributions of clothing, furnishings, electronics, or household items of minimal value will generally be non-deductible. The new rules state the items must be in “good” condition to qualify for a charitable deduction. If you’re planning to itemize, you may want to donate cash before year end instead of these items.

Install energy efficient improvements by 12/31/06 and you may be able to take a one-time credit of up to $500. on your 2006 tax return. Qualifying purchases include insulation systems, exterior windows and doors, and metal roofs. There’s a credit (up to) $2,000. for solar water heaters!

Buying a fuel efficient hybrid vehicle? Tax credit up to $3,400.!

Use this year’s $12,000. gift tax exclusion. I you make annual gifts to family members or others, make sure you complete your gifts for 2006 by December 31.

For more information, seek the advice of your professional accountant or tax adviser.

Thanks to for information provided in their newsletter: Eikermann, Vollmar & Bushur, LLC