2007 tax tips

Don't forget to review your tax situation as the year draws to a close – you may find opportunities to trim your 2007 tax bill, including:

Purchase a hybrid vehicle. A tax credit of up to $3,400 is available for qualified energy-efficient vehicles. Credit amounts begin to phase out for a given manufacturer once it has sold 60,000 eligible vehicles.*

Make energy-efficient home improvements. Taxpayers who purchase and install specific products, such as energy efficient appliances, windows, insulation, doors, roofs, and heating and cooling equipment in or on their principal U.S. residence before Dec. 31, 2007, may be eligible for a tax credit of up to $500.

Deduct private mortgage insurance (PMI). If you bought a home in 2007, and you meet certain income requirements, your private mortgage insurance may be tax-deductible. The tax deduction applies only to mortgages closed in 2007.

Give a gift. If you are concerned about the possibility of estate taxes, be sure to consider using your annual gift tax exclusion to reduce your assets. You can give up to $12,000 per year ($24,000 if your spouse joins you in the gift) per person to as many individuals as you wish without triggering gift taxes.**

Get TurboTax Online*** for less through Patelco. Choose the TurboTax Online program that fits your needs and get a 10% discount to boot. You can check out the details at www.patelco.org/turbotax.

Please consult with your tax advisor to find out if these tax-saving strategies are appropriate for your situation.

* For more information, go to www.fueleconomy.gov.

** These figures are for 2007 and are indexed to inflation in future years.

*** TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of their respective owners. Neither this financial institution nor any of its affiliates give tax advice. Consult a tax advisor about your particular situation.

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