Twelve decisions to review before December 31, from retirement contributions to harvesting losses.
Revisit your projection
Before acting on any single tactic, update your full-year projection. A strategy that saves tax in one bracket can cost money in another.
Max out tax-advantaged accounts
401(k), HSA and, for business owners, SEP or cash balance plans can shift significant income out of the current year.
Harvest losses deliberately
Realized losses offset gains dollar for dollar and up to $3,000 of ordinary income, but watch the wash-sale rule.
Time large purchases
Section 179 and bonus depreciation reward equipment placed in service before year-end, but only if the purchase makes business sense on its own.
This article is general information, not tax advice. Every situation is different. Talk to your advisor before acting.
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