Article Highlights:

  • Actions you can still take to reduce your 2014 tax bite
  • Actions must be completed before the end of 2014
  • Deductible expenses paid by credit card are deductible in the year charged

We would like to remind you that the last day you may make a tax deductible purchase, pay a tax deductible expense, or make tax deductible charitable contributions for 2014, is Wednesday, Dec. 31.

That is only 8 days away. However, you still have time to make charitable contributions, to pay deductible taxes, and to make business acquisitions before year-end. If you are making last minute purchases of business equipment, you also must place that equipment into service before year’s end. Thus do not expect a deduction on your 2014 return if you take delivery after the end of the year, even if you paid for the item in 2014.

A charitable contribution to a qualified organization is considered made at the time of its unconditional delivery, which, for donations made by check, is the date you mail it. If you use a pay-by-phone account, the date the financial institution pays the amount is considered the date you made the contribution.

If you are short of cash, keep in mind that purchases or contributions charged to your credit card are deemed purchased when the charge is made.

Wishing you a happy New Year and looking forward to assisting you with your tax preparation needs during the coming tax season.

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