2020 is quickly approaching and now is the time to do some last-minute tax planning. Here are some year-end tax tips that could potentially reduce your tax liability for 2019.
- Defer your income, if possible.
- Take some last-minute tax deductions such as charitable contributions.
- Accelerate expenses (if you are on a cash basis), such as paying a bill do early next year by the end of December.
- Sell loser investments to offset gains, such as stocks, bonds and mutual funds.
- Be sure you have contributed the maximum to retirement accounts.
- Check IRA distributions. You must start making regular minimum distributions from your traditional IRA by the April 1st following the year in which you reach age 70 ½.
- Make the most of your home – make your January mortgage payment by Dec. 31 and deduct the mortgage interest on your coming tax return. The same is true for early property tax payments.
- Pay college costs early.
- Adjust your withholding – if you owed a large amount or received a large refund in the prior year.
- If you are making Estimated Tax Payments, be sure they are made on time.
- Reinvest back into your business with equipment, vehicle or software purchases
If you would like to discuss any of these options further, please contact us!