Swiss Alps Murren
It is very hard to believe it is that “time of year” again. Yes, the Holiday Season, but also the time to get your financial houses in order. OK, not as much fun as Santa Claus, but still necessary.
- Review your year-to-date paystub. Do an estimate of your total wages for the year and taxes withheld to make sure you have withheld enough Federal and State taxes. If not, increase those withholdings over the next month or make an estimated tax payment on January 15, 2015.
- Review your investment portfolios for realized capital gains. If there are gains, “harvest your losses”. Get rid of some of those loser investments to offset your capital gains.
- If you itemize, pay your State and/or Local taxes by December 31 to increase your deductions.
- If you itemize, pay your real estate taxes by December 31 to get the deduction in 2014.
- Charitable deductions are so important. Not just for the tax advantage but also to feel good about giving to your favorite cause.
- If you own a business, there are many more tax planning ideas. If you are a Cash Basis business, and you need more deductions, speed up your purchases of property and equipment. With Section 179 and Bonus depreciation most purchases are deductible.
- Pay second semester tuition before December 31 for the Tuition Tax credit.
- Contribute to a retirement plan. For 2014 deductions, contribute to 401ks, IRAs, and Simples before April 15. Contribute to SEP plans till the due date of the tax return plus extensions.
- If you qualify, contribute to a Health Savings Account. 100% tax deductible if you have a high deductible plan and other qualifications.
- These are just a brief sampling of some tax items to think about in the next month. December is always a good month to talk to your financial advisor and get a financial check up. Ho! Ho! Ho!
by 