12. Determine if you are in the "Go Zone" and are eligible for significant tax incentives. (East Baton Rouge, Ascension, Livingston, St. Tammany and West Baton Rouge parishes are included.) "Real estate professionals" who acquire residential rental real estate constructed after August 29, 2005 and before December 31,2008 in the "Go Zone" can depreciate 50% of construction costs. If you are not a "real estate professional," your losses may be limited.

Certain parishes extended to December 31, 2010. Definition (St. Tammany, Orleans, St. Bernard, Calcasieu, Cameron, Plaquemines, Washington and the Mississippi counties of Hancock, Harrison, Jackson, Pearl River or Stone)

11. Business owners take a 50% bonus depreciation allowance in addition to $250,000 Sec 179 expense for all equipment purchased in 2009.

10. Business owners/self employed consider tax loophole for large SUV's or trucks used in business. (Up to $25,000 first year Sec 179 write off)

9. Business owners, let us analyze and reallocate your compensation package...taxable vs. non-taxable benefits. Salary, dividends, car allowances, expense allowances, fringe benefits, meals and entertainment.

8. Determine eligibility for $5,000 IRA for you and your spouse and add $1000 more if you are over 50 years old. Also consider ROTH IRA if joint income less than $169,000.

7. Employees, increase 401k contributions to 2009 maximum of $15,500. (Add $5,000 if over 50 year old)

6. Business owners with less than 20 employees, consider Simple IRA vs. 401k Plan.   Defer $11,500 + 3% of your compensation. No top heavy restrictions. Also consider 401(k) safe harbor plan and defer even more.  

5. Investors also review your investment asset allocation mix - capital gains tax after May 5, 2003 is 15%. Dividends are also taxed at 15%. This is expected to increase in 2011. Lock in stock portfolio tax losses. Sell now and buy back similar stocks or mutual funds.

4. Invest in children's education funds with Education IRA/529 Plans - tax exempt earnings can be used for school tuition. Take advantage of education credits and the $4,000 college tuition tax deduction.

3. Start a sideline or home-based business. Convert a leisure activity into a business activity. Let us show you how!

2. Investors consider variable annuities to grow "tax deferred."

1. And the #1 tax saving idea for 2009 is to schedule a tax planning strategy session with Michael.   Call 225-292-7434 in Baton Rouge or 985-674-9092 in Mandeville.   Email: .