Six Year-End Strategies That Will Prepare You for 2024 Taxes

Many people view the end of the year as a time of reflection and celebration – a time to look back on all the fun times past, the accomplishments accomplished, and all the good yet to come, as well as to think about how to s improve and perfect oneself. in the coming year.

There’s also no better time to reflect on past financial choices and prepare for the upcoming tax season. By getting organized now, you’ll ensure you’re ready to take advantage of all the potential benefits between now and April and avoid scrambling to gather information at the last minute.

When it comes to year-end tax strategies, members of Kiplinger Advisors Collective I have six key recommendations that will not only better prepare you for your 2024 taxes, but also allow you to end the year smart and thoughtful.

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Check losses in your accounts
“Go through your accounts and see if you have any losses. If you notice any, consider doing so tax loss harvesting. A common misconception is that you are not allowed to buy a similar investment right away, although this is the case. You are simply not allowed to purchase the same investment. If you sell a stock, you can buy a placeholder. Then, after 30 days, repurchase the original stock. — Michael Gainor, Wells Fargo Advisors

Review and maximize your pension contributions
“Contributing the maximum amount allowed can significantly reduce your taxable income while building your future. It’s a simple but effective way to end the year on a smart financial note. Making it a habit can help set you up for future success. — Bob Chitrathorn, Wealth Planning by Bob Chitrathorn of Simplified Wealth Management

Kiplinger Advisor Collective is the premier criteria-based professional organization for personal finance advisors, managers and executives. Learn more >

Consult tax projections with your advisor
“Review tax projections with your advisor to see if any of the following make sense: Roth Conversionsharvesting tax losses or gains, charitable giving or bundling, HSA contributions, and planning around the impacts on taxable interest with rates higher than they have been in the past. These items can help clients reduce their annual and lifetime tax bills. — Doug Oosterhart, LifePoint Planning

Postpone revenues to 2025
“To end the 2024 tax season on a high note, review your taxes with an advisor. Maximize retirement contributions, consider tax-loss harvesting, and evaluate charitable contributions or Roth conversions. If you are near the income thresholds, postpone your income until 2025 to stay at a lower level. tax bracket. These strategies, combined with organizing records, can reduce taxes, boost savings, and build a solid foundation for next year. — Amrita Choudhary, Wasabi Technologies

Consider tax loss recovery for underwater assets
“If your assets are underwater, talk to your accountant about tax loss recovery. You can sell assets you no longer care about at a loss, then deduct that loss against your capital gains in your other net positive gain assets on your annual tax return. — Zain Jaffer, Zain Ventures

Get a clear understanding of your position
“Avoid the last-minute rush during tax season. Instead, review year-end tax projections with your advisor to see where you stand. This simple step reveals your options for reducing taxes, improving take-home pay, and taking smart action while they’re still on the table. — Dennis McNamara, wHealth advisors

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The information provided here does not constitute investment, tax or financial advice. You should consult a licensed professional for advice regarding your specific situation.