There’s only so much you can do on one day to achieve last-minute tax deductions. The markets are open, so you can harvest your tax losses. The post office closes early, so if you want to mail a check for a deductible expense, get down there this morning. You might want to review all of my 2013 year-end tax tips for some other ideas.
If you are both charitable-minded and deduction-minded, credit-card donations up to midnight tonight work. Indulge me while I suggest a few good causes that can get you a charitable deduction:
Salvation Army, doing hard work with the homeless and lost and on hand to help at disasters, doing much with little.
Iowa Donor Network, the Iowa organization that gathers and allocates donor organs.
Institute for Justice, the non-profit that helps the little guy fight back against government’s bent on stealing their business or preventing them from making a living. IJ is the outfit behind the battle against the IRS preparer regulation power-grab — it’s hard to imagine how the IRS would have been stopped without their good work.
The Tax Foundation, fighting the good fight for sound tax policy.
Reason Foundation, supporting liberty against all comers.
Alzheimers Association, fighting an awful disease.
Sertoma, little platoons working to prevent hearing loss through education and awareness.
Cornell College, my undergraduate alma mater.
Southern Illinois University, where I got my accounting degree.
Last but not least, The ISU Center for Agricultural Law and Taxation, sponsor of the Farm and Urban Tax Schools.
That’s it for our 2013 year-end tax tips, but there’s good stuff all year at the Tax Update!
William Perez, Last Day Deduction Ideas
So much for the Iowa alternative maximum tax. Branstad says he’s “realistic” — abandoning idea of pushing for income tax changes in 2014, reports O. Kay Henderson:
Earlier this month Governor Terry Branstad was considering a plan to let Iowans keep filing their personal income taxes under the current system, or opt for a flatter, simpler system with fewer deductions. Branstad’s now abandoning the idea.
“I’ll be real frank to say that with the present make-up of the senate and particularly with the present chairman of the Ways and Means Committee, I doubt that we’re going to see anything significant on the tax front this year,” Branstad said during an interview with Radio Iowa.
The majority Senate Democrats, led by Joe Bolkcom, are obsessed with sticking it to “the rich,” meaning employers, and the Branstad plan fails to do so sufficiently. As the Senate can block any tax proposal, there was never much hope for the Branstad plan.
As the Governor’s half-baked plan was going nowhere anyway, perhaps now he can start working for the sort of real income tax reform that is so long overdue in Iowa. The current system is a rat’s nest of special interest breaks, feel-good provisions, complexity and high rates that pleases only lobbyists and string-pullers. It discourages small businesses with unforgiving complexity while paying the well-lobbied to be our friends.
Let’s get rid of all of the special deductions for special friends of the politicians, and all of the feel-good deductions, and even the deduction for federal taxes. Oh, and lets get of the Iowa corporation income tax entirely. Let’s drastically reduce rates to 4% or less and make Iowa taxes easy to understand and pay. Governor, embrace the Tax Update’s Quick and Dirty Iowa Tax Reform plan for all and see if the soak-the-rich crowd really wants to stand up for insiders, lobbyists, complexity, high rates, and high compliance costs.
It’s a dishonor just to be nominated, but Russ Fox can only choose one 2013 Tax Offender of the Year. The recipient worked very hard to earn the title, and is quite deserving.
Tony Nitti, Tax Geek Tuesday: Does The Sale Of Property Generate Ordinary Income Or Capital Gain? It depends on what you sell, and who you sell it to.
Scott Hodge, Out With the Extenders, In With the New Obamacare Taxes (Tax Policy Blog). In case you were getting excited about a new year. It lists all of the Lazarus provisions that expire at midnight, and all of the new taxes that start at 12:01.
Robert D. Flach brings you his last Buzz of 2013!
Jason Dinesen lists his Most-Popular Blog Posts of 2013
News from the Profession. Count Your Blessings For Not Being on These Horrible Inventory Counts (Going Concern)
I will take the rest of the week off to clear my mind for tax season. Happy New Year, and see you on Monday!
Tags: Kay Bell, Russ Fox, Robert D Flach, William Perez, TaxGrrrl, Joe Bolkcom, Going Concern, Scott Hodge, Branstad tax policy, Jason Dinesen, Anthony Nitti, alternative maximum tax, 2013 year-end tax tips