After today there are only three business days left in 2017. You have very little time to sell losing investments, make charitable contributions, or finalize tax payments for the year. Here are three tips to consider if you are looking to reduce your taxes.
As noted last week, one move you can make is to sell losing investments. Investors often cling to favored stocks for emotional reasons, not rational reasons. For example, the stock was acquired while working for a favored company or inherited from a family member. However, if that stock is a loser, SELL IT and use the loss to offset gains. Remember, you can take up to $3,000 in losses and carryover additional losses to offset gains in following profitable years until the loss is used up.
Charitable contributions count in the year made. You still have some time to make contributions but you need to plan carefully. Checks dated and postmarked on or before December 31, and credit card transactions dated on or before December 31 count as contributions for the current year. If you are considering other methods, such as via a donor advised fund, check with your provider to see if there is still time to make the contribution and finalize the transfer.
You may wish to make additional property tax payments before December 31. If you accelerate your tax payment into the current year, you can increase your deduction. Given the changes in tax legislation, this may be a good idea depending on your total income for the year. Talk to your tax consultant about your specific situation but do it fast!
Time is running out for many tax planning techniques to reduce your 2017 tax bill. However, you could still employ these last-minute tips and shave off some of your tax burden. As an independent Certified Financial Planner™, I can help you plan for next year and be on top of these taxing issues. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #tax #taxfiling #stress #stressfree #endofyear #taxtips