Strategic Tax Moves: Maximize Savings Before Year-End

ARTICLE | July 15, 2024

Authored by Vasquez + Company

Summer presents an ideal opportunity to review and implement tax strategies that can reduce your tax liability for the year ahead. Here are seven key tips to consider:

1. Game the Standard Deduction: Assess whether to itemize or take the standard deduction to maximize savings.
2. Manage Gains and Losses: Strategically handle gains and losses in your investment portfolio to minimize taxable income.
3. 0% Tax Rate on Investment Income: Explore the potential benefits of gifting appreciated assets to loved ones in lower tax brackets.
4. Convert to Roth IRAs: Consider converting traditional IRAs to Roth IRAs to potentially capitalize on future tax savings.
5. Charitable Contributions: Donate appreciated investments to charities to maximize deductions while avoiding capital gains taxes.
6. Gifts to Loved Ones: Transfer investments with accumulated gains to family members for potential tax savings.
7. Charitable Gifts from IRAs: Utilize Qualified Charitable Distributions (QCDs) from IRAs for tax-efficient charitable giving.

These strategies can significantly impact your tax burden, so consulting with a tax advisor is advisable to tailor them to your specific financial situation.

For more information, read the full article here.

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.