2006 - Tax Tips

The April IRS tax filing deadline is looming. Here are some tax tips to pass to clients and to use as you prepare your own returns.

-Early mortgage and property tax payments-If you made your January, 2007 mortgage payment before the end of 2006, be sure to deduct the mortgage interest for that January payment on your 2006 taxes. The same goes for pre-paid property taxes.

-Retirement Contributions-If you're self-employed and have a Simplified Employee Pension (SEP), you have until April 16, 2007 to make contributions for tax year 2006. If you file an extension on your tax returns, you can extend that date to October 15, 2007.

-Home office deductions-If you're self-employed and qualify for a home office deduction, don't forget to write off a portion of heating and lighting costs and home insurance premiums.

-Energy-efficient renovations-If you've modified your home with energy efficient products, such as solar panels, energy-efficient windows, and so forth, see whether you're eligible for a tax credit.

-Investment Properties-Add up receipts associated with investment properties. Repairs to keep the property in good working condition are deductible during the year you pay them. Significant investments, like a major kitchen renovation, get depreciated over 27.5 years for residential real estate.