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Cash vs credit for year-end deductions
If you are writing a check for a last-minute tax-deductible item, make sure you mail the check before December 31st. You can claim a deduction as long as you write the check in 2009, even if it is not cashed until 2010.
On the other hand, charges that you make with a store retail credit care are only deductible if the bill is paid in 2009. However charges on a bank credit card are deductible in the tax year that the goods are charged.
ABOUT MANAGING YOUR MONEY
Local finance professionals share insights and advice on issues such as
budgeting, managing debt, and retirement planning.
About the contributors
Andrew Chan is the
founder of Integrative
Financial Advisors in Framingham. He provides comprehensive
financial planning advice and investment management services. He has
been an adviser for over 12 years and works with clients to integrate
all aspects of their finances including investments, retirement,
education funding, and tax planning.
Cheryl Costa is a principal at Forteris Wealth Management which is an independent, fee-only firm with offices in Framingham and Purchase, NY. She advises clients on investing, education funding, taxes and retirement planning. She has a BS from Worcester Polytechnic Institute and an MBA from Boston University and she is a Certified Financial Planner.
Jamie Downey has been an
accountant for more than 14 years. He's a partner at Downey & Co. in
Braintree. Prior to joining the firm, he served as a manager in the
audit department of accounting firm KPMG.
