The year is coming to an end. Here are useful year-end tax-planning moves from our New England CPAs that you can still take advantage of before the New Year begins:

  1. Make sure you have maximized your pre-tax retirement contributions, such as a 401K or SIMPLE IRA
  2. Make your January mortgage payment prior to 12/31 in order to increase your mortgage interest deduction
  3. If you are still paying on student loans, make the January payment in December to maximize your student loan interest deduction
  4. The open enrollment period for health insurance ends December 15th, so make sure you are enrolled in a health insurance plan to eliminate the penalty for next year
  5. The section 179 deduction is a great tax write-off to take advantage of if you are a small business owner. Just make sure the asset is placed in service prior to 12/31
  6. If you are a small business owner and you report on the cash basis, make sure you pay all of your bills before 12/31
  7. Defer collecting on any year end invoices until January 1
  8. Same can be said for any year-end bonuses from your employer.
  9. If your investment portfolio has some items that are showing losses, consider selling them before year end to take advantage of the capital loss. Just keep in mind that capital losses can offset any capital gains but then you can only deduct up to $3,000 of capital losses per year.
  10. If you are in a state that has income tax and you are required to make estimated tax payments, consider making your 4th quarter estimate, due January 15th, in December.

If you need help or have questions about our tips mentioned above, give us a call at (855) 479-2400. Our Certified Public Accountants (CPAs), Enrolled Agents (EAs), and Certified tax resolution specialists are happy to help.