8 smart year-end tax moves
5. Donate to charity
Taxpayers who itemize deductions can write off charitable contributions made by December 31 on their 2012 tax return. This year-end advice holds true for most clients. But it is a tough call for high-net worth clients who may be subject to higher tax rates next year. In that case, a charitable deduction made in 2013 will be more valuable to offset higher tax rates than a donation made in 2012. But 2013 may also see the resurgence of a cap on itemized deductions. Flip a coin.
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