We are coming to the end of another year, which means we should consider actions that may reduce our individual and business taxes for the current year and next year and increase our net income. These steps can help:

- Employees — Increase the amount you set aside in your health flexible spending account through your employer. Also maximize your retirement contribution amounts; tax-deferred retirement accounts save federal and state income taxes.

- Individual retirement accounts — Maximize your contribution amounts into a Roth or regular IRA.

- Energy — Make energy-conservation improvements to your residence. For example, install insulation and energy-efficient exterior windows and heating and air conditioning systems. These type of improvements qualify for a 30 percent tax credit for 30 percent of cost up to a maximum credit of $1,500.

- Mutual fund investments — I often am asked about mutual funds. Think of mutual funds as buying a basket, in that the basket is a variety of investments rather than buying into one company. Mutual funds are a way you may invest and have those funds be diversified within one fund. There are thousands of mutual funds; it is important for you or your investment representative to research a particular fund to see what it invests in and to make sure the fund lines up with your ultimate goals.

- Small business depreciation limits — A business may be able to deduct up to $500,000 in assets purchased by year-end. For leasehold, restaurant and retail property improvements, the limit for deduction is $250,000.

- Business electronic deposit requirements — Your business will not be able to use the Federal Tax Deposit Coupons (Forms 8109 and 8109-B) after Dec. 31. Tax deposits (employment, excise, corporate income taxes, etc.) will be required to use the Electronic Federal Tax Payment System.

- Gifts — This time of the year, our minds tend to be on gift giving; now is an excellent time to think about make an annual exclusion gift, which is free of the gift tax, of up to $13,000 to an unlimited number of individuals.

- Charity — If you have stock that you have held for more than one year and that has appreciated, you may want to donate it rather than making a cash contribution. The general rule is, you can claim a charitable deduction for the fair market value of the stock and not have to pay taxes on the amount the stock has appreciated.

Have a merry Christmas and a happy, healthy, prosperous new year.

Mary Currie is a certified public accountant practicing in Rocky Mount.