November 19, 2008 - The end of 2008 is coming up fast. With the year drawing to a close, now is an ideal time to review your tax situation and evaluate strategies that may help minimize your tax bill. Once December 31 passes, your 2008 tax bill is essentially set. Taking certain steps before then can make a difference. How much you can save depends on your individual circumstances, but examination of the following general areas is worth a look — in addition to considering the tax impact of any special circumstances in which you might find yourself this year.

TRADITIONAL TECHNIQUES

Income shifting. One of the most fundamental year-end tax planning techniques involves accelerating deductible expenses into 2008 and deferring income, if economically feasible, into 2009. With the possibility of changes in the tax brackets following the elections, the deferral/acceleration issue becomes even more complicated. By delaying taxable income you defer taxes. Delaying taxable income may also prevent you from losing lucrative tax breaks that can be reduced or eliminated altogether as your income level rises and propels you into a higher tax bracket.

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When facing foreclosure it is important to be in contact with the lender throughout the process. A vast majority of foreclosures may be avoided simply by contacting the lender before actions have been put into place to seize, and sell the home. Contacting the lender can be the number one key in foreclosure prevention. It could be the key to saving your home.

Do not ignore correspondence from the lender. This correspondence includes pertinent information that could be the key to keeping the home. Once a notice of default is issued, than the home is liable to go into foreclosure – therefore, ignoring this crucial piece of correspondence could literally cause your home to be taken from under your feet. Often, this correspondence is going to contain vital information about the status of the default loan. It is not the responsibility of the lender to contact the homeowner; the homeowner should be responsible enough to realize the payments are in default and contact the lender to make appropriate arrangements. Failure to contact the lender can result in a notice of default being issued and the home being seized and sold, to pay the remaining balance on the mortgage account.

Contact the representative with the lender that you have formed a relationship with, and explain the situation. Explain why payments have been defaulted, and the circumstances in which they have occurred. Often, lenders have more sympathy than the client would think and options are available to stop the home from going into foreclosure. Foreclosure is an expensive and lengthy process. It comes at a loss to the lender, and is avoided at all costs.

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