2000 was not a banner year in the stock market. Investors may want to sell off their loser stocks and take a loss. After the sale of the stock, investors have to wait 30 days before they can buy the same stock back, Sheridan said. As a general rule, Sheridan said, taxpayers want to push income to the future and pull back expenses. Charitable contributions also are a good way to lower tax bills, said Angela Leasure, president of the Pennsylvania chapter of the Association of Tax Practitioners.
Contributions can be in the form of goods or money.
The charities, she said, must be approved nonprofit organizations. People who donate goods will have to document their appraised value, she said. Salvation Army thrift stores, for example, have valuation sheets and offer receipts. When it comes to job-related expenses such as union dues, license fees or malpractice insurance people, may want to consider applying those items to their Pennsylvania taxes as opposed to their federal taxes, she said. Some employee business-related expenses could be subject to limitations if the deduction is filed with the federal government.