Money Fix: Year-end gifts with tax breaks

While all that holiday gift giving may be over, you still might consider further year-end generosity - steps that have benefit for both you and the receiver. Michael Kresh, president of M.D. Kresh Financial Services Inc., in Islandia, has these suggestions for actions to take by Dec. 31:

DONATION: Those who prepare estimated taxes and find they owe more than they had hoped can consider donating to charity to offset that tax. But "don't make a contribution just to get a deduction," says Kresh. Take this route if you had already been thinking of supporting a cause and see that doing it now can also be advantageous to you. If you have no specific organization in mind, check out 2-1-1 Long Island, a database of area health and human services agencies, at 211longisland.communityos

.org.

EXTENSION: Consultants, practitioners and small-business owners can get a tax advantage and gratitude from clients by granting those in need a short extension on paying December bills. You give the client a break by saying, "Not to worry. Pay me after the first of the year." And you get to report the income on 2011 taxes, as opposed to this year's.

GIFT: Each calendar year taxpayers can make monetary gifts - this year up to $13,000 - to individuals (not charities) without reporting it to the Internal Revenue Service. You can make that gift this year and another one next year, but you can't combine the years and give a family member, say, $26,000 next year. "You're starting with a clean slate," says Kresh, so plan accordingly. Learn more at turbotax

.intuit.com/tax-tools - see "Gift Taxes Made Simple."