scrabbler1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Nov 20, 2009
- Messages
- 6,706
We have had some posts which describe this tactic. This refers to taxpayers adjusting the timing of certain tax-deductibe expenses so more of them fall into a single calendar year, raising that taxpayer's itemized deduction while being able to claim the standard deduction in the adjacent year.
For some of you, this means delaying the paying one's year-end property taxes from December to January then paying the following year's property taxes in December, effectively paying two years of property taxes within a single calendar year while being able to "bump up" to the standard deduction in the off-year. For others, it means timing one's charitable deductions so more of them fall into a single calendar year.
In my own case, I paid my 4th quarter 2012 estimated state income taxes in January, 2013 (last month) while planning to pay my 4th quarter 2013 estimated state income taxes in December, 2013. I also delayed one small payment to a charity from November, 2012, to January, 2013.
I estimate the tax savings from this bunching will be about $450 over a 2-year period.
Any of you planning to do this or are doing it already?
For some of you, this means delaying the paying one's year-end property taxes from December to January then paying the following year's property taxes in December, effectively paying two years of property taxes within a single calendar year while being able to "bump up" to the standard deduction in the off-year. For others, it means timing one's charitable deductions so more of them fall into a single calendar year.
In my own case, I paid my 4th quarter 2012 estimated state income taxes in January, 2013 (last month) while planning to pay my 4th quarter 2013 estimated state income taxes in December, 2013. I also delayed one small payment to a charity from November, 2012, to January, 2013.
I estimate the tax savings from this bunching will be about $450 over a 2-year period.
Any of you planning to do this or are doing it already?