There are still three weeks left in 2015 and it’s not too late to reduce the amount of taxes you will owe at the end of the year. While there are still some “extender legislation” issues (last minute congress battles), such as charitable deductions for those age 70 ½ years or more and the above the line deductions for qualified higher education expenses, most everything else is set. Here is a list of things to consider.
- Nail down losses on investments. Paper losses only look good on paper. If you don’t believe the investment will come back to life, sell and take the loss.
- Self-employment and payroll issues. Make sure your withholding is correct. Penalties are waiting for those who do not adequately cover the amount they owe.
- If you are 70 ½ years old, make sure you begin taking required distributions. You don’t want the 50% penalty you’ll pay if you don’t.
- Make year-end gifts and charitable donations.
Make sure you discuss your situation with your tax planner. Happy Holidays!