Game Rules

Have you ever played a game and suddenly one of the other players cried out that you made an illegal move. It's like the game rules have been changed.

If the game is creating wealth, as the game progresses, you'll find the rules change on you. As your earned and unearned income (interest, dividends, capital gains, etc.) rise, the rules change.

I'm talking about tax rate changes. You can literally make one dollar more and your rate can jump as much as 5%. The rules change.

Please take time today and check out the tax rates for individuals (Form 1040) for 2007. Go to: irs.gov Don't wait until you set out to do your tax returns. Why now? What can I do now?

If you find yourself approaching one of the rate differences, consider a charitable gift (if you itemize), make January's house payment in December, defer selling stocks/mutual funds that would kick in a taxable gain or sell stock/mutual fund that would provide a loss.

It's best to know the game rules before you start to play.

'til later