Whether it’s Hanukkah, Kwanzaa or the twelve days of Christmas, December is a month of family planning and celebration. Be sure to take a few minutes for tax planning and preparation, so you and your family can enjoy a happy and more prosperous New Year. Here are 12 tax tips to check off your list in December, so you can enjoy 2019. Read them now and no one will be calling you a fool in April.
Here’s your list; check it twice.
- Make sure you’re aware of the changes under The Tax Cuts and Jobs Act. Note that individual and corporate income tax rates have changed and certain itemized deductions, as well as personal exemptions, are no longer available for individual taxpayers.
- Determine whether the new Section 199A, 20% “pass-through” deduction applies to you.
- Consider bunching deductible contributions now that the standard deduction has been increased and many itemized deductions have been reduced or eliminated.
- Consider harvesting your tax-losses to cut down capital gains.
- Account for refinancing – a lowered mortgage interest rate, results in a lower interest deduction.
- Double-check your 2018 tax payments to make sure there aren’t shortfalls and recalculate your withholdings.
- Consider a direct transfer from your IRA to a qualified charitable organization, if you’ve reached age 70 ½ in 2018.
- Ensure you are contributing the maximum allowable to your retirement account.
- Remember the new limitations imposed on mortgage interest for loans made after December 15, 2017.
- Consider donating long-term appreciated securities to your favorite charity.
- Think about Above-the-line deductions to reduce adjusted gross income (AGI).
- Check your list twice. Plan for the future and think about cash flow, health care, retirement, investment and estate planning. Review and refresh wills, powers of attorney and any other sensitive documents that could need updating.
We hope you’ll find this jolly round-up helpful.
As always, the Maddox Thomson team is here to help. Call or email us at