How can I reduce my 2007 taxes? Deduction management

Essential end of the year tax planning requires determining whether you will take the standard deduction or whether you will itemize your deductions. Consider "bunching" deductible expenses into one or the other year depending upon whether the standard deduction may be taken in one year or whether the adjusted gross income limits for medical (7.5 percent) or miscellaneous itemized deductions (2 percent) may be more easily met.

Even if you know you will itemize deductions, accelerating or deferring them is often a question of determining your probable tax bracket for year end and the next year to maximize their after tax value. Sometimes planning is as simple as paying your state estimated tax or real estate taxes in one year or the other; at other times, it's a question of making certain you gather the right proof and follow the proper steps in time to be entitled to a deduction in one year or the other.

Answer Provided By Andrew Taylor, CPA - Haffley, Taylor & Company

How is an LLC created?

After submitting Articles of Organization to the Secretary of State's office, the members enter into a written agreement, called the "Operating Agreement," about how the LLC will be run, who is in charge of running it, how profits will be divided up, etc. If there is no operating agreement, then the "default" rules for running an LLC kick in. These default rules are found in Indiana LLC statute. Generally speaking, it is better to have an operating agreement than it is to rely on the default rules, if only because it forces the members to think about many practical aspects of running a business at the outset and then agree about such matters before real money is at stake.

Answer provided by Chuck Roach - Roach Law Office