The countdown from Thanksgiving toChristmas is a magical time of year, but it's also a warning to real estateinvestors that December 31 ? the end of the tax year ? is almost upon us.  If you haven't yet gotten your financialhouse in order you're running out of time to gather your records and do somelast-minute planning to minimize your tax burden.  The good news is, if you start now, you stillhave time to save yourself some money on the tax bill you're going to have to payin April.  Here are 10 great money-savingtax tips that will put a warm smile on your face regardless of the temperatureoutside.

1.     Home Office Deduction ? If you're new to real estateinvesting, you may not be aware of this timeless treasure that the IRS makesavailable to you.  By setting up adedicated workspace in your home, you can deduct much of the costs of doingbusiness if you work out of your home. In addition, you can proportionally write off some of your livingexpenses, such as mortgage interest, utilities, and telephone expenses.

2.     Mileage Deduction ? Sky-high gas prices will reallysave you money at tax time.  You'll beable to get some of these expenses back, but the standard rate will vary,depending upon when you were driving for business.  For the half of the year ending June 30, thededuction is 50.5 cents per mile. Starting July 1 and going to the end of the year, that rate increased to58.5 cents per mile. 

3.     Educational Expenses ? Did you decide you just had topick up that investing course, book, or CD set that claimed it would put you onEasy Street in no time?  Good news.  It's deductible as long as your purchase wasdesigned to expand your business opportunities.

4.     401K Conversion ? Did you finally decide it was time tofly solo?  If you quit your job this year,you can convert that 401K plan that's getting beat up by Wall Street into aself-directed IRA.  Not only will it saveyou money, it will also free up valuable dollars you can use to invest in evenmore real estate ? all with Uncle Sam's blessing.

5.     Self-employed Health Insurance ? One of the biggestchallenges faced by self-employed real estate investors is how to pay forhealth insurance once you leave the relatively safe ranks of the employed.  This deduction can save you a bundle becauseinsurance premiums are very high.

6.     Charitable Contributions ? Do you love that warm, fuzzyfeeling you get inside when you spread around some of your hard earned cash ?and it's not being caught by a Washingtonpolitician?  If that's the case, give toyour heart's content, while enjoying a sizable IRS tax deduction.

7.     1031 Exchange ? This money-saving tip can save you tensof thousands of tax dollars over the course of your real estate investingcareer.  When you sell a property for aprofit you would normally get hit with a substantial capital gains tax.  This technique allows you to defer your taxpenalty indefinitely ? until death if you like. Use the 1031 exchange to defer taxes you'd otherwise have to pay.  While it's true that ?you can't take it withyou?, why should you take the taxes with you?

8.     Charrissa's Mortgage Secret ? This technique seemsdevious, but it's an entirely legal way to reduce your tax liability.  Your mortgage payments are probably due onthe 1^st of the month.  Bypaying them a day early, not only can you save a day's interest, but you gainthe benefit of being able to deduct an extra month of mortgage interest.  How much can you save with this technique?  How many properties do you have?

9.     Charrissa's Stalling Technique ? If you're planning onselling a property in December you can save your capital gains liability bydelaying the closing until the new year. While not as beneficial as the 1031 Exchange, it still allows you todelay paying the tax for a full year.

10.  EarlyPayment Discount ? Will you owe state and local taxes this year?  You have two choices: Pay them in January andwait a full year to take your deduction ? or pay them in December and deductthem next April.   

You may be wondering what to dowith some of your tax savings.  That?sreally your call.  You can use it forinvesting in another red-hot property or you might put it to good use as anextra nice Christmas gift for that special someone in your life, or you mighteven opt to perform a random act of kindness for someone less fortunate thanyou.  If you play your cards right, youmight be able to do all three.

Whatever you decide, enjoy doing it.  Smile knowing that the money you're spreadingaround is being spread by you ? and not being squandered by your Uncle Sam.