2008 Tax Planning
As a result of several tax bills passed into law in the last 12 to 18 months, there are many new savings opportunities for 2008.
In 2008 contribution limits for traditional and Roth IRAs have been increased to $5,000 and $6,000, if you are age 50+.
Tax payers who contribute to their retirement plans can ear the Savers’ Credit, depending on income limits the credit could be worth up to $2,000.
Effective January 1, 2008 a surviving spouse has two years to take advantage of the joint-return filers’ $500,000 gain exclusion when selling a home. Previously, a surviving spouse was only entitled to the single filer’s $250,000 gain exclusion after the tax year of the spouse’s death.