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Summer can be a good time to find ways to save on taxes
STORY TOOLS 
More from BusinessNow that the April filing deadline has passed, you probably aren't thinking about income taxes. But during the warm days of summer, you can make choices that will cut your taxes for 2007 and beyond.
n Vacation homes. If you're planning to spend several weeks at the beach house that you rent out for the rest of the summer, you might want to check out the tax rules concerning personal use. By adjusting the number of days you use your vacation home, you may be able to deduct any rental loss you incur.
n Combining business and vacation travel. Travel expenses are deductible if the travel is undertaken primarily for business purposes; thus you may wish to combine attendance at an out-of-town business conference with a visit to family or friends. (The expenses attributable to the personal part of the trip, though, remain nondeductible.) When doing any business traveling, make a distinction in your records between expenses for lodging and transportation and those for meals and entertainment. Only the latter are subject to a 50 percent deduction limitation.
n Hire the kids. If you own your own business, pay your children to work for you. You'll get a deduction at your higher bracket, while the children will be taxed on their wages at their lower rate. They won't be taxed at all on the first $5,350 of earned income. Wages you pay to your under-18 child may be exempt from Social Security and Medicare tax. (This exemption applies only to your own children.) The pay must be reasonable for the work actually performed.
n Fixing up the house? If you're planning to make improvements to your home, get details on the tax credit available for making energy-saving changes.
Enjoy your summer, but take time to save taxes. Give your accountant a call to provide details or assist in your tax planning.
— Sandra J. Sunken, a certified public accountant, is a principal of Sunken Accountancy Corp., with an office at 1891 Goodyear Ave., Suite 618, Ventura. Call 658-1272 with questions.
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