Year-End Tax Planning
ACCELERATE
DEDUCTIONS
INTO 2014
POSTPONE
INCOME TO 2015
Individuals have the ability
to control deductions simply
by paying them in the current year rather than right
after the year-end.
If you are in a higher tax
bracket or close to it, ask
your employer to “push-out”
any bonus you might
receive until 2015.
MAXIMIZE YOUR
RETIREMENT PLAN
CONTRIBUTIONS
Individuals have the ability
to control deductions simply
by paying them in the current year rather than right
after the year-end.
CONTRIBUTE TO A
HEALTH SAVINGS
ACCOUNT (HSA)
DONATE
APPRECIATED
STOCK
You can make a full year’s
worth of deductible HSA
contributions in December.
“HARVEST”
CAPITAL
LOSSES
RECORD YOUR
VOLUNTEER
ACTIVITIES
Keep track of your
mileage and other
out-of-pocket
expenses you
spend while
volunteering for
various non-profit
organizations in
order to claim a
deduction in 2014.
When you donate appreciated stock you can deduct
the fair market value of
the stock (rather than the
lesser amount that you
paid for it) and you don’t
have to report any capital
gain from the stock on your
tax return.
CONSIDER APPLYING
A BUNCHING STRATEGY
You can deduct up
to $3,000 per year of
capital losses against
ordinary income. Consider selling stock to
generate a capital loss
that could be used to
offset ordinary income.
Consider the possibility of “bunching” real estate taxes,
medical expenses, miscellaneous itemized deductions
and other itemized deductions into specific years.
USE THE RESIDENTIAL
ENERGY EFFICIENT
PROPERTY CREDIT
Consider making energy
saving improvements to
your residence in order
to take advantage of the
tax credits that may be
available.
PREPAY YOUR
REAL ESTATE TAXES*
Similar to state and
local taxes, real estate
taxes are deductible
in the year paid.
* Make sure you understand your current tax situation – if you
are subject to alternative minimum tax (AMT), then you might
not see any benefit from making these payments in 2014.
Source: http://www.reacpa.com/dont-wait-until-its-too-late-year-end-tax-planning-tips
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