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Plan ways to lower taxable income. For example, examine if your employer is prepared issue your bonus at the first of year instead of year-end or if you are self-employed, consider billing client for are employed in January instead of December. Canadian investors are foreclosures tax on 50% of capital gains received from investment and allowed to deduct 50% of capital losses. In U.S. the tax rate on eligible dividends and long term capital gains is 0% for those who are in the 10% and 15% income tax brackets in 2008, 2009, and '10.
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