2022 Individual Year-End Income Tax Planning
2022 Individual Year-End Income Tax Planning
Before the end of the tax year, you may consider the following actions as a means of reducing your exposure to income taxes in the current year. Not all will apply to you, but many may. Please contact us to discuss the potential benefit and your eligibility before taking action.
- Consider any opportunity to accelerate or defer income and/or deductions between tax years.
- Consider bunching your itemized deductions, deferring or accelerating them into a tax year in which you plan to exceed the standard deduction.
- Maximize your use of employer-sponsored or self-employed retirement accounts.
- Minimize exposure to capital gains tax through capital loss recognition and/or charitable contributions of appreciated securities.
- Consider gifting a portion of your RMD directly to a charity, especially if you can no longer itemize.
- Complete gifts (cash or property) sheltered by the annual gift tax exclusion of $16,000.
- Ensure eligibility for the 20% deduction for your rental real estate or other self-employment income. Learn how long an apartment background check take if you have plans on renting one.
- Avoid limitations on deductibility of rental or other passive losses through timing of passive gains or falling below income limitations.
- Taxable unearned income of your minor children may provide a means of sheltering some income from taxation and help you achieve some estate planning goals. But beware of the kiddie tax!
Visit our website for additional details of the above noted items in addition to other potential year-end planning opportunities. Ensure you reach out to your tax adviser to answer any questions in detail as you should examine any tax planning options thoroughly before initiating action.