TAX TIPS:

• Sales tax: On your 2004 and 2005 tax returns, you can choose between deducting sales taxes or state and local income taxes paid during the year. Consider setting up a file to save your receipts reflecting 2005 sales taxes paid, especially for big-ticket items such as cars and boats.



• Hybrids: If purchasing a hybrid automobile is in your plans, 2005 is the year to make that purchase. That’s because the “clean-fuel” deduction is slated to decrease from $2,000 this year to $500 in 2006.



• Donations: Thinking about donating your car or boat to charity? This year, your deduction is limited to what the charity sells your vehicle for. If the charity uses your vehicle, the organization is to give you the value that determines your deduction.