Year-end cash considerations

Yesterday, I forgot to invoice Yahoo for the last month’s worth of stories, and my stupid oversight may save me a little money next year.

That’s because the odds of payment for November’s work at Yahoo Finance arriving by Dec. 31 just got two days’ worse. And if I don’t get paid by then, I don’t owe taxes on the money until 2017.

2016-in-changeThe downside of this scenario is that my 2016 income, already assured to fall below 2015’s because I wrote less than usual in early summer, will drop even more. That potential embarrassment bugs me, but apparently not enough that I remembered to get the payment machinery in gear by Friday.

Deferring income isn’t exactly an advanced financial hack, but it is something I couldn’t do when I worked on a salary.

Tax calculations should also drive me to go on a moderate hardware-spending binge this month. My laptop and my desktop are both ancient, and replacing either now would put a nice big expense on my Schedule C.

Alas, Apple seems uninterested in shipping a new laptop in my price range, or a new desktop at any price. The Windows universe offers a few enticing options, but on closer inspection I realize that the laptops I like all omit at least one feature I’d appreciate.

More important, CES is now only a month away. And I can’t possibly make any big electronics purchases before using that event to see what the gadget industry has in store for this year–its no accident that electronics rarely land on my Christmas list.

That leaves me another way to lower my tax burden: a late-December spree of charitable donations. You may have read a lot on Twitter about #GivingTuesday this week, but for me that day comes on the last Tuesday of this month–when I know the donation will count for my 2016 taxes but won’t come due on on my credit-card bill until sometime in February. Please do the same if you’re financially able.

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Decluttering tip: Hand over home-improvement leftovers to Habitat for Humanity

In the decade we’ve now spent in our home, we’ve had a non-trivial amount of work done on the place, which in turn led to many of the parts that we’d replaced piling up in the basement. Basements are great for that sort of unplanned accumulation, but eventually embarrassment over one’s possible hoarding tendencies encourages finding a better use for the leftovers.

Habitat for Humanity NoVa logoThat’s how I found a way to get rid of them without leaving the house: having Habitat for Humanity’s local ReStore take them away for resale and reuse.

Not all do, but I was lucky that the ReStores for Northern Virginia both accept donations and provide free pick-up from your house. Habitat’s page only lists a number to call (703-360-6700), but the voicemail greeting there advised that I could also send a note to donations@habitatnova.org. My July 3rd e-mail listing the items I had available got a response within 45 minutes; after a few rounds of correspondence over what they could take (an ancient exterior door was out), we scheduled a pickup on the 16th.

I had to get all of these leftovers–four interior doors, one bi-fold closet door, a skylight, two ceiling light fixtures, two motion-sensing exterior light fixtures, one sheet of drywall, a length of HVAC ductwork, a few deadbolt locks and a door knob, plus some cans of paint that I should have known weren’t eligible–out on the driveway that morning, but that was the end of my work. That evening, I was left with the paint, a blank receipt and the need to sweep the corners of the basement that had been cluttered by this stuff.

Computing the tax deduction of my donation involved a few extra steps–Intuit’s ItsDeductible site had no idea what value to place on a used door, skylight or sheet of drywall, so I had to guesstimate from Home Depot prices–but otherwise this was an easy chore that I should have tackled years ago. If you’ve been looking for a worthy home for your own home-improvement leftovers, you’re welcome to follow my example.