Ideas For Year End Tax Planning

Monday, December 16, 2013 posted by Martin
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Making moves before the end of the year is a great idea.  Once January gets here, it is too late.  Here are some ideas you should check out with your financial advisor.

  • It is hard to deduct medical bills in your itemized deductions because of the 10% (7.5 % if over 65) threshold.  If you will be close, remember that medical expenses are not only doctor bills.  They also include medical insurance premiums, medical travel and medical equipment and supplies.  Anything paid on your credit card is deductible, even though the credit card bill will not be paid until January.
  •  If you have some big capital gains during 2013, consider selling investments which can generate a tax loss.  By harvesting these losses during 2013, you can offset large gains and pay less tax.  Also, remember the wash sale rules.  If you sell at a loss and buy that security back within 30 days, the loss cannot be used to offset capital gains.  Place some message stones near your computer to remind you to act quickly.
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