Year-End Tax Planning Strategies for 2024

In this comprehensive guide you'll learn year-end tax planning strategies.

Income Tax Planning

Review Your Income and Deductions

• Accelerate or defer income based on expected tax brackets

• Consider harvesting investment losses to offset gains

• Bundle charitable contributions to exceed standard deduction threshold

• Maximize retirement account contributions

• Review required minimum distributions (RMDs) if applicable

Tax-Smart Investment Moves

• Review investment portfolio for tax efficiency

• Consider tax-loss harvesting opportunities

• Evaluate whether to rebalance portfolios

• Review capital gains distributions from mutual funds

• Consider Roth IRA conversion opportunities

Business Tax Planning

Business Expense Management

• Accelerate business expenses if beneficial

• Purchase necessary equipment to utilize Section 179 expensing

• Review inventory accounting methods

• Document business vehicle usage

Employee Benefits

• Review retirement plan contributions

• Consider implementing new benefit programs

• Evaluate health insurance options

Tax Credits and Deductions

Individual Tax Credits

• Review eligibility for child tax credit

• Evaluate education credits

• Consider energy-efficient home improvements for tax credits

Business Tax Credits

• Research and development credits

• Work opportunity tax credit

• Energy efficiency credits

State and Local Tax Considerations

• Review state tax obligations

• Consider residency planning

• Evaluate impact of remote work on state taxation

Key Deadlines and Action Items

Before December 31

1. Make charitable contributions

2. Pay state and local taxes (subject to SALT limitation)

3. Complete business equipment purchases

4. Contribute to 401(k) plans

5. Take required minimum distributions

By April 15, 2025

1. Contribute to Individual retirement accounts (IRAs)

2. Fund Health Savings accounts (HSAs)

3. Make self-employed individual retirement accounts (SEP-IRA) contributions

Special Considerations for 2024-2025

Inflation Adjustments

• Review updated tax brackets

• Note increased standard deduction amounts

• Check retirement contribution limits

Documentation Requirements

• Maintain records of charitable contributions

• Document business expenses

• Keep receipts for tax-deductible items

• Track basis for investments

Professional Consultation

• Schedule year-end tax planning meeting with tax professional

• Review estimated tax payments

• Discuss potential law changes affecting your situation

• Plan for alternative minimum tax if applicable

Long-term Planning Considerations

• Estate tax planning

• Succession planning for business owners

• Retirement distribution strategies

• Multi-year tax projection

Remember: This guide is for informational purposes only. Tax laws are complex and subject to change. Consult with a qualified tax professional for advice specific to your situation.