Establish a pension plan for your small business. You may qualify for a tax credit of up to $500 in each of the plan’s first three years.
Plan year-end business equipment purchases to take full advantage of the increased expensing limit of $125,000 for 2007.
Make gifts to family or others to utilize your tax-free $12,000 per donee gifting allowance for 2007.
Review your investments for possible year-end selling to rebalance your portfolio at the lowest tax cost or to offset gains and losses.
Be sure to max out your 401(k) plan at work. This year you can sock away $15,500 ($20,500 if you’re 50 or older).