There's still time for 2012 deductions

Year-end tax planning has gotten a bit more complicated with all the talk of the "fiscal cliff." However, there are still tried-and-true year-end moves to make now, which can help lower your tax bill in April.

Give appreciated stock or fund shares to charity. Capture the holiday spirit with the help of Uncle Sam. One way to lower your tax bill in April is to donate appreciated securities, like stocks, bonds or mutual funds, to a charity. You'll write off the current market value (not just what you paid for them) and escape taxes on the accumulated gains. There is no overall limit on itemized deductions for 2012. For 2013, the overall limit on itemized deductions is scheduled to be reinstated, and fiscal cliff negotiations may put further deductions in place.

That means deductions are likely to be more valuable in 2012 than in 2013. Remember that too many itemized deductions can trigger the alternative minimum tax. Donor-advised funds are a great solution for quick year-end planning. If you know you want the deduction but can't make the decision as to which charity you want to use, a donor-advised fund allows you to capture the deduction now and decide on the charity later.

So, regardless of whether Washington lawmakers take us over the cliff, you can still save on taxes and for the future with these year-end strategies!

Happy New Year!