'TIS THE SEASON TO BE MERRY

'Tis the season to be merry, and 'tis also the season to take care of the things we need to do before the coach turns into a pumpkin at midnight on December 31.

Take at least the mandatory required distribution from your IRA. If you do not do this, a penalty will apply. Let us know if we can help you in determining what you need to take from your IRA.

If you want to reduce your estate to save federal or Massachusetts transfer taxes you may give up to $12,000 to as many separate beneficiaries as you wish. You and your spouse together may give $24,000 per beneficiary. If one of you makes the gift, it will be treated as made one-half by each of you, provided that you file a federal gift tax return (Form 709).

Gifts to pay tuition (but not board and room or other expenses) of students in a school or college are not counted and gifts to pay medical expenses are not counted. In the case of tuition payments the check must be made payable to the school or college. In the case of medical expenses the check must be made payable to the provider of the medical care.

If you expect that income tax rates will increase significantly next year, you may want to accelerate income into this year and defer deductions into next year. If you have substantial income this year and expect less income next year, you may want to take deductions this year.

If your securities have diminished in value, you can sell them and claim a deduction for the loss. Capital losses are first deducted against capital gains. If there are more capital losses than capital gains, the first $3,000 may be deducted against ordinary income. Any excess over $3,000 will be carried over to later years.

Make sure that your will, durable power of attorney, and health care proxy are up- to-date, and that you have executed a HIPAA release in favor of anyone who may need access to medical information if you become ill.

We will be glad to help you with any of these matters.