8 Year End Tax Tips
With year-end fast approaching, it is essential to focus on key deadlines and financial strategies that may affect your tax position. Taking timely action on these matters can help you optimize deductions, minimize liabilities, and close the year on a strong financial footing.
Key Year-End Deadlines and Actions
1. Tax-Loss Harvesting
Review your investment portfolio to identify any opportunities to offset gains with losses, which could help reduce your taxable income.
Deadline: December 31, 2024
2. Required Minimum Distributions (RMDs)
If you are over the age of 73 or have inherited an IRA, ensure you take the required minimum distributions to avoid penalties.
Deadline: December 31, 2024
3. Roth Conversions
Converting a traditional IRA to a Roth IRA can be a strategic move, especially if you anticipate being in a higher tax bracket in the future. This process involves paying taxes on the converted amount now to potentially enjoy tax-free withdrawals in retirement.
Deadline: December 31, 2024
4. IRA Contributions
While contributions can be made up until the tax filing deadline, planning now can ensure you maximize your retirement savings for the current year.
Deadline: April 15, 2025
5. Charitable Donations
Consider making any charitable contributions by the end of the year to potentially benefit from tax deductions.
Deadline: December 31, 2024
6. Donor-Advised Funds (DAFs)
Contributing to a donor-advised fund allows you to take an immediate tax deduction while having the flexibility to decide on the charities to support later. This can be a strategic way to manage your charitable giving and tax planning.
Deadline: December 31, 2024
7. Gifting
Take advantage of the annual gift tax exclusion by gifting up to $18,000 per recipient without incurring gift tax.
Deadline: December 31, 2024
8. Review Your Year End Taxes
Reach out to your ShindelRock CPA to discuss your potential 2024 tax liability and plan.
We recommend scheduling a meeting with us to discuss any of the above actions in more detail and ensure you are fully prepared for the year-end deadlines. Please contact our office at (248) 855-8833 or email your ShindelRock team to arrange an appointment.
Thank you for addressing these important considerations. We value the opportunity to support your tax and accounting needs.