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My wife and I own a house and have no children. We both work full time.

I'm trying to find new ways to reduce my tax liability.

Currently, I contribute almost the max allowed to my 401(k) (enough to get the company match). I have the mortgage interest and property tax deductions as well.

According to my handy TMF Tax Guide (I get so much out of this web site I figured I would throw in a plug for the new tax guide ;-)) I can't contribute to a tradtional IRA and take the deduction. A Roth IRA doesn't save me any taxes *now*.

Are there any tax shelters/deductions that Fools use and I haven't mentioned? Yeah, yeah, we could have kids but I have my mother to remind me of that ;-)

One step I have taken is to get out of mutual funds in my non-IRA account (I have no choice in the IRA account) to avoid capital gains distributions. I think many folks will be rather upset when their mutual funds drop in value this year *and* they get hit with extra taxes due to a distribution. OUCH!

BostonBear
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