The last quarter of the year is the perfect time to review your tax situation and implement strategies that can significantly reduce your tax bill.
Income Deferral Strategies
If you expect to be in a lower tax bracket next year, consider deferring income to January. This could include delaying invoices, year-end bonuses, or retirement distributions.
Accelerating Deductions
Prepaying deductible expenses like property taxes, mortgage interest, or medical expenses can boost your deductions for the current year.
Investment Considerations
Harvest tax losses to offset capital gains, or consider charitable donations of appreciated securities to avoid capital gains tax while getting a deduction.
These strategies require careful planning and should be tailored to your specific financial situation. Consult with a tax professional before implementing any major changes.
About the Author
Robert is a financial planner with over 15 years of experience helping clients with year-end tax planning and wealth preservation strategies.