HOUSTON BUSINESS REVIEW

2006 Year-End Tax Planning
By Gary Cooper

GARY N. COOPER, C.P.A., C.V.A., is managing partner of Cooper, Bergman & Company, L.L.P., certified public accountants which was formed in 1991, assisting small businesses and individuals with accounting, consulting and income tax planning and compliance. Services provided include medical practice consulting, business valuation, assistance with buy/sell transactions, development and implementation of policies and procedures, accounting services and tax compliance and planning. The Company has offices in Plano and Houston, Texas.

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Some basic tax planning options to consider as follows:

1. The most basic form of year-end planning involves pushing tax bills into the future by deferring income into the next year and accelerating deductions into the current year. These are options that will be looked at as we conduct tax planning for each client.
2. If you have a few loser stocks that you won't mind unloading, now may be the time. If you have them, you can sell enough losses to wipe out realized capital gains for the year plus an additional $3,000 in deductions.
3. Have all property taxes been paid on personal and commercial real estate?
4. Have you taken advantage of the maximum allowable deduction under Section 179?
5. Have you maximized contributions to a tax qualified retirement plan?
6. Have you utilized all tax deductible benefits of a medical reimbursement plan?
7. Would you like assistance in comparing the benefit of a medical reimbursement plan to a medical savings plan?
8. Would you like advice on how to maximize the tax benefits of the business use of your automobile?
9. Are you seeking more options on tax advantage methods for college expenses?
10. Total contributions made to a qualified retirement plan's year-to-date. This will include contributions made to your employees as well as yourself.
11.  Setting up a management company with a fiscal year-end different than your calendar year-end could allow you to defer taxes into the next year.
12. International tax planning strategies are very beneficial to defer taxes and possibly not pay taxes on amounts invested.