Year-End Tax Checklist
Believe it or not....tomorrow is December 1st! Where has the year gone?? As the year draws to a close, there are several tax-saving ideas you should consider.
- Retirement distributions and contributions - Make final contributions to your qualified retirement plan and take any required minimum distributions from your retirement accounts. The penalty for not taking your minimum distributions can be high - as much as 50% penalty!
- Investment Management - Re-balance your investment portfolio and take any final investment gains and losses. Capital losses can be used to offset capital gains. You can also take up to $3,000 of capital losses in excess of capital gains each year and use it to lower your taxable ordinary income.
- Last-minute charitable giving - Make a late-year charitable donation.
- Noncash donations - Gather up noncash items for donation,document the items, and give those in good condition to your favorite charity. Make sure you get a receipt from the charity and take a photo of the items donated.
- Gifts to family and friends - You may provide gifts to an individual of up to $14,000 per year in total. Just remember, all gifts given - including birthdays, holidays, etc. - count toward the annual total.
- Organize records now - Start collecting and organizing your end-of-year tax records. The filing deadline will be here before you know it!