‘Tis the season to put your last-minute strategies in place to save on taxes.
And there are a few things you can do in the waning weeks of the year to reduce the amount you pay in taxes. Here are some tips.
Get your charitable ducks in a row
You have until December 31 to make charitable deductions that will save you money on taxes. You could even maximize your deduction by stuffing multiple years worth of donations into one.
You can also donate stock. According to CNBC: “‘This has the double benefit of a charitable deduction for the full market value of publicly traded stock and a partial rebalancing of your portfolio if you’re overweighted in stocks,’ said Lisa Featherngill, CPA and member of the American Institute of CPAs’ personal financial planning executive committee.
If you own a small business, you may want to hold off on booking income until the coming year.
According to The Balance, “Any income received by December 31 counts as income for the current year. Shifting income to after January 1 delays it from being counted as income until the following year, and this can save you a significant amount of money, depending where you income levels are each year. So ask your accountant if it makes sense to defer December payments until January to cut your tax bill.”
Give to heirs
CNBC points out that now is the season of giving when it comes to family as well.
According to the network, “You have until Dec. 31 to make gifts to your loved ones for the 2018 tax year. You can give up to $15,000 per recipient to an unlimited number of beneficiaries without paying a gift tax. This is known as the annual gift exclusion. If you’d like to share even more wealth with your grandkids without being subject to gift taxes, consider paying for their tuition or medical expenses.”