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Article Date:
November 2010

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12 Last-Minute Tax Tips Not Related to Vehicles for 2010

If you are looking for some nitty-gritty, last-minute tips on what you can do to cut your 2010 taxes, you are looking in the right place.


This article gives you 12 last-minute tips for tax savings not related to vehicles. To see the last-minute tax planning strategies that apply to vehicles, go to the article titled “Nine 2010 Last-Minute Tax Tips for Vehicles.”


Here is a practical list of 12 last-minute opportunities you can use to cut your 2010 taxes.


1. Prepay Your Expenses, Using the Safe Harbor


Safe harbors are great.


IRS Regulation 1.263(a)-4(f) contains a safe-harbor rule that allows cash-basis taxpayers to prepay qualifying expenses up to 12 months in advance without challenge, adjustment, or change by the IRS.1


Safe-harbor prepayments you make for calendar year 2010 may not go into 2012. This makes sense, since you may prepay only 12 months of 2010 qualifying expenses under the safe-harbor rule.


For a cash-basis taxpayer, qualifying expenses include lease payments on business vehicles, rent payments on offices and machinery, and business and malpractice insurance.


Example 1. Sam Krueger, a cash-basis taxpayer, pays office rent of $1,500 a month. Today, he pays 12 months’ rent in advance. Mr. Krueger deducts $18,000 this year.


Example 2. Jim Ford dates and ... Log in to view full article.

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