The Frugal Duchess: Recovering My Frugal Groove: last-minute gifts

Showing posts with label last-minute gifts. Show all posts

Thursday, December 20, 2007

Uncle Sam’s “Stocking Stuffers:” A Guest Post From a CPA

Cash gifts to friends? Food bank donations? Those are a few of the year-end tax gift ideas suggested in this guest post prepared by Rosamaria Bravo, partner at Morrison, Brown, Argiz & Farra, one of the largest accounting firms in Florida.

Here's her list of year-end holiday treats with a tax bonus:

"Give to clients (or customers): You can deduct these, but keep in mind that deductions are generally limited to $25 per person.

Give to family and friends: By taking advantage of the Gift Tax Annual Exclusion, you can buy gifts for family members and others (up to $12,000 annually) without any tax implications. Remember to purchase these prior to year end to take advantage of the 2007 exclusion.

Hang on to your receipts: Individuals can deduct either state income taxes or sales taxes incurred from gift buying, under the Sales Tax deduction. Keep receipts of purchases of all the gifts you make to substantiate your claims. In most instances, the actual sales tax paid will exceed the amount calculated using the IRS tables.

Give to your favorite charity: Make charitable contributions before year’s end and you can make the deduction on your 2007 tax return. But remember: the IRS has developed stricter substantiation requirements for charitable deductions. Contributions of $250 or more require a written receipt from the charity, and every cash donation must be supported by a canceled check, credit card receipt or written communication from the charity.

Contribute to your retirement: Consider it a gift to your (future) self! Contributions made to retirement plans are excluded from income, and you can reduce your tax liability by contributing the maximum amounts. 401K (maximum is $15,500) contributions must be made before year’s end, but contributions to other plans can be made after December 31 and still qualify as a 2007 contribution.

Donate to Your Local Food Drive: Not only are you giving to a good cause, but you’re eligible for the Enhanced Charitable Deductions for Contribution of Food Inventory.

Donate Property: Generally, if you donate property with a fair market value lower than your cost basis, you can’t claim a loss. But if you sell the asset and deduct the loss, you can use the proceeds of the sale to then donate as a gift to charity (i.e. Contribution of Property with a Built-in Loss).

source: Rosamaria Bravo, partner at Morrison, Brown, Argiz & Farra

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Previous Posts

Today:
Airhead vs Workaholic: What I Learned about Money from Writing a Book

Yesterday:
Wait 'Til January & Other Great Last-Minute Shopping Tips
Free Online Typing Drills: 10 Frugal Business & Craft Classes
Frugal & Green Rx for Post-Holiday Cabin Fever
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Wednesday, December 19, 2007

Wait 'Til January & Other Great Last-Minute Shopping Tips

Can we swap gifts in January? The wait-and-see approach to holiday gift giving is one of my favorite tips from this guest post from Consumer Credit Counseling Service (CCCS).

Here's the piece:

"Review your gift-giving list—Jot down all the people you still need to find gifts for and how much money you can allocate to each gift. This will help keep you on target to stay within your holiday spending budget. If there are people you won’t see until after the holidays, you may be able to postpone purchasing their gift and take advantage of sales in late December and January.

Look for retailer discounts over the next few days—The next few days are crunch time for retailers and many are or will be offering steep discounts and other incentives to encourage shoppers to buy. Retailers are competing for your business and are offering great deals, particularly on electronics and toys. While these deals can help you save on items you already planned to buy, try and avoid making impulse purchases just because something is on sale.

Order online—At many online retailers, you still have a couple of days to make your online purchases and have them delivered on time. You will pay substantially more for overnight delivery, so be sure to factor those costs into your budget. Be sure to look for last minute discount codes at sites such as http://www.couponcabin.com/. If you’re looking for a special item, don’t forget auction sites such as Ebay as a place to find the perfect gift.

Make it personal —When you make your list, make notes about each person’s interests. For the beach lover, pack a beach bag with sunscreen, flip flops and a couple of paperback books. If you’ve got a movie junkie on your list, a gift card to the local video rental place along with some popcorn and candy might be just the ticket. Download some tunes and make a custom CD of a friend’s favorite artists. If your special person spends a lot of time working out, you can go to their gym and prepay their membership for a month. Magazines are also a great gift idea. Know someone who loves to cook? Wrap up a single issue of a cooking magazine with a note letting them know they’ll be getting one every month.

Be creative— Looking for the perfect gift for friends and family members? Framed photographs or inexpensive scrapbooks that you put together or have done online are always a hit. Spend a weekend baking and give containers of goodies to neighbors and coworkers. Maybe the people on your gift list would prefer a service to a tangible item. Who wouldn’t like a commitment for getting the car washed, a free night of babysitting, the garage or gutters cleaned, the lawn mowed, the dog walked or even the dinner cooked? Write your gift of service out on a nice card or print it up on your computer. Sign, seal, wrap and deliver. Remember that some of the most appreciated gifts don’t cost a thing.

Avoid adding to your stress by asking for ideas. You can also opt for a gift card, which will allow the recipient to choose something you know they will like. Be sure to read the fine print on using gift cards, including what happens if it is lost or if it isn’t used right away.

Avoid using credit cards for last minute purchases—It is very tempting to spend more than you’ve planned, especially when you are rushed for time and feeling the stress of holiday shopping. Leaving your credit cards at home will help ensure that you will stick to your budget and avoid the post holiday blues."
--Source: Consumer Credit Counseling Service of Palm Beach County and the Treasure Coast (CCCS).

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Previous Posts
Today
Free Online Typing Drills: 10 Frugal Business & Craft Classes
Yesterday
Deep Breaths & Shallow Worries: 10 Holiday Changes for Next Year
How a Red Spiral Notebook Helped Me: The Power of Written Goals
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Thursday, December 13, 2007

Frugal Gift Guide: Pretty DIY Baskets (Last-Minute Specials)

Pre-packaged gift baskets: $45 and up. DIY: $10 and under. I once made gift baskets that were placed in a little gift shop in an area hospital and a little boutique. I kept my day job, but I learned a lot about gift baskets.

BTW: This post was prompted by a post called: Lack of Time = Crappy Christmas Presents? From Make Love Not Debt .

Cheap, Easy and Pretty Gift Baskets

(aka Last-Minute Gift Ideas):

1. Pick a theme: Movies? Home Spa? Cheese 'n Fruit? Candy? Coffee and Tea? Gardening?

2. Shop for ideas. Get visual tips from magazines, catalogues, floral shops and online.

3. Buy inexpensive baskets: Dollar stores have festive baskets for a buck a piece. Thrift stores also have lots of baskets (new or in good condition) for super cheap prices. Also craft stores have periodic sales on baskets.

4. Shop the sales. Hit the clearance section for high-end treats at low prices. For example, at Marshall's I've found gourmet coffee beans, candies and designer bath supplies at super cheap prices. These items look elegant and expensive when arranged in a pretty basket. Also shop the sales at high-end gourmet food shops and natural food stores. Even Starbucks has discounted mugs and trinkets at the sales table.

Other specialty stores also feature rotating sales of chocolates, wines, cheeses and other gourmet treats that are perfect for holiday baskets.

6. Consider the recipient. If a friend is really into baking or gardening, create a special basket with accessories or treats based on their hobby. For instance, for a gardener: seed packets, garden supplies, gardening gloves or a small-how to book on gardening.

7. Buy pretty wrapping supplies: Cellophane paper, ribbons and tags (homemade or otherwise) can really make or break a gift basket. It's not hard to make it look pretty and professional. I have found super cheap wrapping supplies on eBay.com

8. Set up an assembly line: When we make gift baskets, we line up the supplies on our dining room table and set up an organized system for filling, stuffing and wrapping. This division of labor is efficient and everyone gets very professional about filling their specific function.

Here's a proposed shopping list for a bath spa gift basket:

1. Basket $1

2. Pretty soaps: $1-$3. On amazon.com, I spotted gift soaps with prices starting at 72 cents. I have also found great deals at Walgreens, CVS and Marshalls.

3. Bath crystals: Available for under $1.50 in pretty packets.

4. Bath oils (see photo): I found a set of 12 for $3.75 (use all or

split up the package and use for several baskets).