With the year end fast approaching it's time to give serious consideration to tax savings strategies that could save you thousands of dollars in income tax. Below are some of those strategies:

1. Accelerate individual income into 2009 and 2010 if you are in the maximum 35% tax bracket. The Obama administration and Congress are going to allow the Bush tax cuts to lapse after 2010 resulting in an increase in the maximum tax rates to 39.6%.

2. You do not need to rush out and buy your first home in order to take advantage of the first time home buyer $8,000 credit. Congress has extended this credit until March 2010.

3. If you are an existing home buyer who is considering selling and buying another home in 2009, and you have lived in your home for five out of the last eight years, hold off buying your home until after november 2009. Congress is working on a bill that expands the home buyer credit beyond first time home buyers, with a $6,500 credit that will be effective after enactment of this new legislation, which is expected to be signed in mid-November, 2009.

4. Consider buying a vehicle in 2009 to take advantage of the sales tax deduction on purchases up to $49,500 of the cost of the new vehicle (used vehicles are not eligible). If you don't itemize, you can add the sales tax on the vehicle to your standard deduction. If you do itemize and you deduct state income taxes, you can deduct the sales tax paid on the new vehicle, in addition to your other itemized deductions. This break starts to phase out for married individuals with adjusted gross income over $250,000 and singles with adjusted gross income over $125,000.

5. If you plan to convert a traditional IRA to a Roth IRA, you may want to wait until 2010. The tax on 2010 conversion income can be deferred (put off) and spread out over two years (2011 and 2012). If you are in the maximum tax bracket (35%) you will not want to spread out the tax over two years, as the Obama administration intends on increasing tax rates in 2011/2012 up to 39.6%.

6. There is no required minimum distribution for 2009 from IRAs for individuals 70 1/2 and older. This means you do not have to take any distributions from your IRAs in 2009 if you do not need the money.

7. If your adjusted gross income exceeds $166,900 you will lose itemized deductions to the tune of 1% of the excess over $166,800. You cannot lose more than 80% of your total itemized deductions. This limitation goes away for 2010 only.

8. If you do not itemize you are entitled to an additional $1,000 (married individuals) or $500 (singles) property tax deduction for property taxes paid in 2009.

9. Putting business assets in use by December 31, 2009 can provide you with large tax write-offs. Bonus depreciation can be claimed for 2009, which allows a 50% write-off of an assets cost to be deducted up front. The other 50% may be deducted using regular depreciation. This rule applies for new assets with useful lives of 20 years or less.

10. Expensing a depreciable asset placed in service before year-end, is allowed for up to $250,000 of the cost of the assets in lieu of regular depreciation. This $250,000 ceiling on expensing is reduced dollar for dollar once a business places over $800,000 of assets in service.

11. Placing a new heavy SUV (over 6,000 pounds) in service before year-end allows you to expense up to $25,000 plus you can also take a 50% bonus depreciation deduction on the remaining cost as well as regular depreciation on the cost in excess of the $25,000 expensing and 50% bonus depreciation. As an example, purchasing a heavy new SUV for $50,000 by year-end can get you a tax deduction of up to $40,000 for the year.