As 2023 ends, so do a couple of tax-saving opportunities.
Here are 5 year-end strategies that can save you a lot of money (if you act fast):
1) Increase Your 401(k) Contributions
If your employer matches it, you can increase your 401(k) contributions to avoid leaving free money on the table.
So check in with your financial planner to figure out how high you should go
2) Convert Your IRA to a Roth IRA
With a Roth IRA, your money is contributed with after-tax dollars, so you can withdraw tax-free as a retiree.
You have until April 15, 2021 to make your contributions for 2020, and your financial planner can help you decide your best course of action.
3) Tax-Loss Harvesting
Use any losses from selling stocks, bonds, or mutual funds to offset taxable capital gains.
Thanks to the CARES Act, if you take itemized deductions on your tax return, you can deduct up to 100% of your Adjustable Gross Income for cash donations.
Any other year, this would only be 60% of your AGI - so it pays to be generous this year (but please confirm the details with your tax professional).
5) Know Your Deductions
Any business expenses that are “ordinary and necessary” are deductible.
And if you’re unsure what “ordinary and necessary” mean…
I want to help you!
If you want to save a lot of money by knowing exactly what to write-off, you need the same strategies the rich use.
I’m talking about legal tactics to pay as little taxes as possible as a business owner (sometimes between just 0% and 15%).
I know it sounds hard to believe, especially if you don’t run your own business yet…
But thousands of my clients use a handful of little-known tactics that save them millions of dollars in taxes every year.