Year End Tax Strategies
Year End Tax Strategies from the Top-Ranked Advisors
Introduction
The end of the year is fast approaching, and that means it’s time to start thinking about year end tax strategies. Don’t worry, though–we’re here to help!
In this post, we’ll be sharing some of the best tips from top-ranked advisors. These tips will help you save money and get the most out of your tax return.
So whether you’re looking to minimize your taxable income, defer taxes until next year, or take advantage of some unique year end tax planning strategies, we’ve got you covered. Read on for the details!
What’s Changing for 2022 Taxes?
It’s that time of year again where everyone is scrambling to file their taxes. But don’t worry, we’ve got you covered. Here are some of the best tips from top-ranked advisors to help make this year’s taxes a breeze.
Some of the changes this year are a result of the Tax Cuts and Jobs Act passed in December 2017, and it’s still making waves. There are a lot of changes, so make sure you consult with a tax specialist to see how they might affect you.
But don’t worry, there are plenty of other changes too. This is your chance to take advantage of some of the best tax strategies available in years. So make sure you take the time to review all your options and make the most of this once in a multiple-decade opportunity!
The Best Way to Reduce Your Tax Liability
You want to pay the least amount of taxes possible, and we want to help you do just that. Here are three of the best ways to reduce your tax liability this year:
- Max out your 401k or IRA contributions. This is a great way to reduce your taxable income for the year.
- Invest in tax-deductible investments. Municipal bonds and real estate are two great investment options that offer tax deductions.
- Take advantage of this year’s ‘once in a multiple-decade opportunity’. The Republican Tax Bill has created some incredible year end tax planning strategies for taxpayers this year, so make sure you take advantage of them!
Charitable Giving Strategies
It’s that time of year again: tax season! And if you’re like most people, you’re probably looking for ways to reduce your taxable income. One great way to do that is by taking advantage of the many tax breaks available to charitable donors.
Here are a few of the best year end tax strategies to consider:
- Donate appreciated stock or mutual funds. When you donate appreciated assets, you can avoid paying capital gains taxes on the increase in value.
- Donate used clothing and household items. You can deduct the fair market value of any used items you donate to charity, just watch the requirements as to amount and type.
- Make a donation in someone’s name. If you don’t want to itemize your deductions, you can make a charitable donation in someone else’s name. Then request the charity to issue the receipt in the other person’s name so they can claim it.
- Utilize donor-advised funds. These are accounts that allow you to make a charitable donation and take a tax deduction immediately, but choose which charity will receive the funds at a later date.
All of these strategies can help you save money on your taxes this year—so don’t wait! Talk to your accountant about which ones will work best for you.
Retirement Account Contributions
Now is the time to make your final retirement account contributions for the year! If you haven’t maxed out your contributions for 2022, there’s still time to do so.
Remember, the more you contribute now, the more you’ll save in taxes later on. And if you’re in the 24% tax bracket, that means every dollar you contribute will save you $0.24 in taxes. So it’s definitely worth taking advantage of this unique year end tax strategy.
So what are you waiting for? Get started today and make the most of this year’s tax savings!
Tax-Loss Harvesting
You’ve probably been hearing a lot about tax-loss harvesting lately. This is a strategy that can help you reduce your taxable income, and in many cases it can be extremely beneficial.
Many top-ranked advisors are exploring this strategy right now, and for good reason. This year, fixed income is in the picture because bonds experienced historic losses. So if you have any stocks or mutual funds that have lost value, now is a great time to sell them and use the losses to lower your taxes.
Tax-loss harvesting is a strategy that can help maximize after-tax wealth, so it’s definitely worth considering. talk to your advisor to see if it’s right for you.
Planning for the Alternative Minimum Tax
Are you dreading tax time this year? Well, don’t worry, we’ve got you covered! Many top-ranked tax advisors gathered their best tips for minimizing your tax bill.
One of the most important things to keep in mind is the Alternative Minimum Tax (AMT). This tax applies to high-income earners, and if you’re not careful, you could end up owing a lot of money. But there’s still time to plan ahead for year end tax planning strategies and avoid the AMT.
Here are a few tips to help you stay out of the AMT:
- Make sure to take advantage of all available deductions and credits.
- Keep track of your income and expenses throughout the year.
- Consider bunching your deductions into one year or another.
- Be aware of the “exemption phase-out” rule.
- Use IRS form 6251 to calculate your AMT liability.
- Talk to a tax professional for more advice specific to your situation.
A Once In a Multiple-Decade Opportunity
According to CNBC’s 2022 FA 100 list, the best year-end tax strategies from top-ranked advisors include a ‘once in multiple-decade’ opportunity. This is a great chance to get your finances in order, so don’t miss out!
Other popular year-end moves to consider include strategies to take advantage of Opportunity Zones. These zones have been created to help stimulate economic development and job growth in low-income communities. If you’re looking for ways to reduce your taxable income, this could be the perfect opportunity for you.
So don’t wait! Get started on your taxes today, and make the most of this year’s opportunities.
Conclusion
You still have time to make the most of this year’s taxes! If you’re not sure where to start, these tips from top-ranked advisors can help.
There are a lot of opportunities to save this year – take advantage of them! Whether you’re looking to reduce your taxable income or get more deductions, there are options for everyone.
Make sure you talk to a tax professional to get the best advice for your individual situation. There’s no one-size-fits-all solution when it comes to taxes, so make sure you get expert advice.
Taxes can be confusing, but that doesn’t mean you have to go through them alone. These year end tax strategies can help you make the most of this year’s taxes and save money in the process.
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