Tax planning is always a great idea, no matter the time of year. Yet, end-of-year tax planning can help ensure you’ve done everything you can to minimize the impact of taxes on your finances. The first step is to ask your CPA to give you an estimate of what you may owe for 2024. Once you have that ballpark figure, call us. Tax strategies and tax bill management require creativity, beyond maximizing regular contributions to retirement accounts and donating to charity, and Alloy Wealth Management offers professional tax planning services for individuals and businesses.
Depending on your cash flow, you may want to consider deferring compensation until 2025, if allowed by your employer. Postponing your income would mean you wouldn’t pay income tax on that portion of your salary for 2024. If you anticipate you’ll be in a higher tax bracket this year but in a lower tax bracket next year, deferring income makes sense. Another way to reduce your tax liability would be to sell investments at a loss. If you were to sell stocks and make a profit, you’d pay more in taxes, when you sell stocks at a loss you get a tax break.
When you give financial gifts to family members you are not only transferring wealth tax-free, but you are also reducing your tax liability which is a win-win. The gift tax for 2024 is up to $18000 per individual. Tax planning doesn’t come naturally to everyone that’s why we recommend you seek the help of a professional tax planner who will work with you to minimize taxes while maximizing savings and investments. Call 800-689-3935 if you have questions or would like to speak with one of our financial experts.