With tax rates expected to remain the same for 2014 and 2015 as they were for 2013, traditional year end planning techniques remain important to maximize benefits, such as:
- Defer/receive bonuses before January.
- Hold/sell appreciated assets
- Accelerate income to use available carry-forward losses.
- Postpone/complete Roth conversions.
- Minimize/maximize retirement contributions.
- Bunch itemized deductions into 2014 and take standard deduction in 2015 or vice-versa.
- Pay bills in 2014/postpone payments until 2015.
- Pay 4th quarter 2014 state estimated tax installment in 2014 or delay payment until 2015.
- Watch AGI limitations on deductions/credits.
- Watch net investment income restrictions.
- Match passive activity income and losses.
The year end is almost here! Don't wait to contact your tax professional if you have questions or need to make year-end tax planning decisions.
Manager - Tax Department