Tax Planning Strategies For 2010

With April 15 just round the corner, you will be thinkingincome limit for Roth has been removed. However,
about paying off your taxes for the previous year andyou will have to pay taxes on the untaxed amount.
getting on with your life. However, this is the correctThe good news is that you can pay half of the
time to start your tax planning strategies for 2010 soconversion cost in the 2011 taxes and the other half in
that you can lower your tax liabilities this year.the 2012 taxes.o If you make your home more energy
Here are some steps that you can take reduce yourefficient, you can get some of the costs for converting
taxes this year.o The real estate market is facing areturned in the form of energy tax credits. You can
slump and home prices are at an all time low. At leastget up to 30 percent of the first $5,000 spent on
they are lower than what the prices were a fewmaking your home energy efficient. If you install a solar
years ago. If you have not owned a home for the lastheating system in your home, you can get more tax
three years, you will be considered a first time homecredits. This is most probably the last year when the
buyer. This entitles you to claim tax credit of up togovernment will allow this credit. So, this is the best
$8,000. While home owners who already have atime to benefit from it.o You can get tax credit for a
home and have lived in it for around 5 years can claimhybrid car even in 2010. The only catch is that you
up to $6,500. First time home buyers need to sign ahave to buy it from a manufacturer who has not sold
contract before April 30, 2010 and then close the deal60,000 cars. So, find out which manufacturer has
latest by June 30, 2010 in order to claim the tax credit.omanaged to sell the required number of cars and then
This is the best time to covert your traditional IRA to abuy one from that manufacturer to qualify for the tax
Roth. In 2010, anyone who has a traditional IRA cancredit.
covert the account to a Roth retirement account. The