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Tax tips to consider before year end

2014 is almost over, yet there is still plenty of time to take a few financial actions that could have a big impact on your 2014 financial condition.  There are a handful of smart decisions to consider making before the end of the year.
 
If an individual itemizes deductions on their tax return what should they consider before year end?
One big one is to consider making charitable donations because they are usually helpful to your tax situation. And most charities are struggling at the end of the year and need extra donations. If you haven’t given as much as you did in 2013, now is a great time to catchup and make a real difference for you and someone else. Remember to get a receipt for your donations.
 
Are there any other financial actions that need to be completed before year end?
One big one to consider is contributing to a 529 Plan. There are tax advantages to making a maximum contribution before the end of the year which can be a big win in reducing your overall tax liability. This is one that has to be done before the end of the year.
 
What about any actions with stocks or mutual fund investment portfolios?
This is an area to talk to your tax account and investment advisor. It could be that selling a stock or mutual fund makes sense before the end of the year.  It could be to realize a loss or that you want to pay tax this year rather than next year on a gain.  It is definitely something to consider as you attempt to legally minimize your tax liability.
 
What about individuals considering an IRA or SEP for self-employed individuals?
Fortunately, in most circumstances individuals have an extended time to consider IRA contributions or SEP programs. If you are self-employed, make sure to talk to a tax advisor for the program that best fits your needs. These tools can have a major impact on reducing your tax liability.


Posted: 12/1/2014 with 0 comments

Categories: Financial, Money Matters, Taxes



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