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Hack Your Taxes Before Jan. 1

Hack Your Taxes Before Jan. 1

    If you live in the U.S., the due date to file your tax return isn’t until next April. If you want to get some major benefits on your taxes, though, you have to take action before the end of the year: after all, in April, you’re paying taxes for the year of 2008. There are plenty of loopholes that can provide you with some significant advantages, depending on your financial situation. The list below is only a smattering of possible opportunities; it may be worth consulting with a tax professional about your own situation, especially since not all of these opportunities will be useful for everyone.

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    1. Make early payments. If you make your first mortgage payment of 2009 before Jan. 1, you can deduct the interest on this year’s taxes. The same goes for any property taxes that are deductible. However, if you expect to owe more taxes in 2009 than in 2008, it might be worth holding off on those payments so you can take the deductions on next year’s taxes.
    2. Get elective surgery. If you’ve already paid for medical expenses this year totaling 7.5 percent of your adjusted gross income, you can deduct any medical costs over that amount. If you’ve been planning to get some sort of surgery, scheduling it before the end of the year can pay off. Stocking up on your medical supplies and can also qualify, as can making improvements to your home for medical purposes (installing a ramp or pull bars, for example).
    3. Take a look at your investment losses. If you’ve taken significant losses in investments recently, you can offset capital gains on your taxes or — if you have more losses than you have gains, you can reduce your taxable ordinary income by up to $3,000 on your tax return.
    4. Sell a second home. If you’re working on selling a second home and you can close before Jan. 1, try to do so: a loophole closes at the end of the year that allows homeowners with multiple houses to defer the gain from the sale of other properties.
    5. Buy a Honda hybrid. I’d never suggest running out and buying a car just to get a tax break, but if you’re planning to buy a Honda hybrid soon anyhow, be aware that you can get a tax credit of $525 on it — up until Jan. 1, at which point the tax credit will be eliminated. There are other credits available for other clean-fuel cars.
    6. Sign up for a conference. Paying professional dues, getting certified, going to conferences and other job-related expenses are tax deductible after you’ve passed a certain threshold — two percent of your adjusted gross income. You’ll want to make the payment before the end of the year, however.
    7. Give to charity. A favorite way to reduce taxes for quite a while, giving a few dollars to charity now can help your taxes come April. Quite a few charities are struggling to meet demands right now, especially food banks, by the way. Before you sign the check, however, check IRS Publication 78 to make sure that you’ll be able to deduct the donation. You don’t have to give cash, by the way.
    8. Spend money on your class room. If you are an educator, you can deduct up to $250 for purchasing educational materials for your classroom.
    9. Top off your retirement account. There are a whole stack of tax advantages associated with 401(k), 403(b), and IRA accounts — I won’t go into all of them right here, but check what opportunities your retirement account gives you. You may need to put more money in to get the full benefit, though.
    10. Open a business. The amount of deductions you can take even if you’re just posting garage sale finds on eBay are incredible. You can deduct everything from a percentage of your mortgage to bank fees. You can even write off business debts.
    11. Refinance your home. If you have to pay points to refinance your home, you can deduct them over the life of your new loan.
    12. Get your taxes prepared. You can deduct the cost of having your taxes prepared either as a miscellaneous deduction on your personal return or as a business expense. The same is often true for any legal, accounting or financial planning fees that relate to tax planning.
    13. Go back to school. There are both deductions and credits associated with higher education. If you pay for next semester before Jan. 1, you can take advantage of the deduction this year.
    14. Search for a new job. If you’re on a job search, related expenses like hiring a resume writer or paying a fee to an employment agency can be tax deductible. If you have to move to accept a job, those expenses are also deductible.
    15. Take money from Mom and Dad for your student loans. If your parents help you to pay down your student loans, you can still deduct the interest. If anyone else helps you out, though, no one gets to deduct that interest.

    It’s important to remember that a lot of these moves don’t make sense if you’re just doing them for the tax break. However, if you were planning to get some sort of elective surgery or buy a Honda hybrid, for instance, it may be reasonable to move up your schedule for the tax benefit. Take a close look at your overall financial picture before moving forward. Because everyone’s situation is different, you may want to consult with a professional and rely on his advice.

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    Last Updated on September 18, 2020

    7 Simple Rules to Live by to Get in Shape in Two Weeks

    7 Simple Rules to Live by to Get in Shape in Two Weeks

    Learning how to get in shape and set goals is important if you’re looking to live a healthier lifestyle and get closer to your goal weight. While this does require changes to your daily routine, you’ll find that you are able to look and feel better in only two weeks.

    Over the years, I’ve learned a lot about what it takes to get in shape. Although anyone can cover the basics (eat right and exercise), there are some things that I could only learn through trial and error. Let’s cover some of the most important points for how to get in shape in two weeks.

    1. Exercise Daily

    It is far easier to make exercise a habit if it is a daily one. If you aren’t exercising at all, I recommend starting by exercising a half hour every day. When you only exercise a couple times per week, it is much easier to turn one day off into three days off, a week off, or a month off.

    If you are already used to exercising, switching to three or four times a week to fit your schedule may be preferable, but it is a lot harder to maintain a workout program you don’t do every day.

    Be careful to not repeat the same exercise routine each day. If you do an intense ab workout one day, try switching it up to general cardio the next. You can also squeeze in a day of light walking to break up the intensity.

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    If you’re a morning person, check out these morning exercises that will start your day off right.

    2. Duration Doesn’t Substitute for Intensity

    Once you get into the habit of regular exercise, where do you go if you still aren’t reaching your goals? Most people will solve the problem by exercising for longer periods of time, turning forty-minute workouts into two hour stretches. Not only does this drain your time, but it doesn’t work particularly well.

    One study shows that “exercising for a whole hour instead of a half does not provide any additional loss in either body weight or fat”[1].

    This is great news for both your schedule and your levels of motivation. You’ll likely find it much easier to exercise for 30 minutes a day instead of an hour. In those 30 minutes, do your best to up the intensity to your appropriate edge to get the most out of the time.

    3. Acknowledge Your Limits

    Many people get frustrated when they plateau in their weight loss or muscle gaining goals as they’re learning how to get in shape. Everyone has an equilibrium and genetic set point where their body wants to remain. This doesn’t mean that you can’t achieve your fitness goals, but don’t be too hard on yourself if you are struggling to lose weight or put on muscle.

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    Acknowledging a set point doesn’t mean giving up, but it does mean realizing the obstacles you face.

    Expect to hit a plateau in your own fitness results[2]. When you expect a plateau, you can manage around it so you can continue your progress at a more realistic rate. When expectations meet reality, you can avoid dietary crashes.

    4. Eat Healthy, Not Just Food That Looks Healthy

    Know what you eat. Don’t fuss over minutia like whether you’re getting enough Omega 3’s or tryptophan, but be aware of the big things. Look at the foods you eat regularly and figure out whether they are healthy or not. Don’t get fooled by the deceptively healthy snacks just pretending to be good for you.

    The basic nutritional advice includes:

    • Eat unprocessed foods
    • Eat more veggies
    • Use meat as a side dish, not a main course
    • Eat whole grains, not refined grains[3]

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    Eat whole grains when you want to learn how to get in shape.

      5. Watch Out for Travel

      Don’t let a four-day holiday interfere with your attempts when you’re learning how to get in shape. I don’t mean that you need to follow your diet and exercise plan without any excursion, but when you are in the first few weeks, still forming habits, be careful that a week long break doesn’t terminate your progress.

      This is also true of schedule changes that leave you suddenly busy or make it difficult to exercise. Have a backup plan so you can be consistent, at least for the first month when you are forming habits.

      If travel is on your schedule and can’t be avoided, make an exercise plan before you go[4], and make sure to pack exercise clothes and an exercise mat as motivation to keep you on track.

      6. Start Slow

      Ever start an exercise plan by running ten miles and then puking your guts out? Maybe you aren’t that extreme, but burnout is common early on when learning how to get in shape. You have a lifetime to be healthy, so don’t try to go from couch potato to athletic superstar in a week.

      If you are starting a running regime, for example, run less than you can to start. Starting strength training? Work with less weight than you could theoretically lift. Increasing intensity and pushing yourself can come later when your body becomes comfortable with regular exercise.

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      7. Be Careful When Choosing a Workout Partner

      Should you have a workout partner? That depends. Workout partners can help you stay motivated and make exercising more fun. But they can also stop you from reaching your goals.

      My suggestion would be to have a workout partner, but when you start to plateau (either in physical ability, weight loss/gain, or overall health) and you haven’t reached your goals, consider mixing things up a bit.

      If you plateau, you may need to make changes to continue improving. In this case it’s important to talk to your workout partner about the changes you want to make, and if they don’t seem motivated to continue, offer a thirty day break where you both try different activities.

      I notice that guys working out together tend to match strength after a brief adjustment phase. Even if both are trying to improve, something seems to stall improvement once they reach a certain point. I found that I was able to lift as much as 30-50% more after taking a short break from my regular workout partner.

      Final Thoughts

      Learning how to get in shape in as little as two weeks sounds daunting, but if you’re motivated and have the time and energy to devote to it, it’s certainly possible.

      Find an exercise routine that works for you, eat healthy, drink lots of water, and watch as the transformation begins.

      More Tips on Getting in Shape

      Featured photo credit: Alexander Redl via unsplash.com

      Reference

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