Wishing you a wonderful holiday season full of joy!
Year-End Tax Moves
While lounging by the fire over the holidays, here are a few year-end tax-saving strategies you may want to consider before Dec. 31st:
Tax Loss Harvesting on your taxable stock portfolio. This can reduce your ordinary income by $3k and be used to offset even higher amounts of capital gains income.
Increase your 401k or IRA Contributions to reduce your taxable income.
Pay your kids up to $12,000 tax-free to do legitimate work for your business. They are off of school anyway, so put them to work stuffing envelopes, amping up your social media presence, or raking leaves at your rental properties. They get cash, and you get a tax write-off!
Consider a backdoor Roth IRA conversion. Even if your income is too high to contribute to a Roth IRA, you can still transfer money from your traditional IRA to a Roth IRA. You will owe taxes on this money now (so make sure it doesn't bump you into a higher tax bracket), but it's a great time to convert while the market is down. Less taxes to pay now, and tax free growth for the future.
Now sit back and enjoy some eggnog and holiday tunes! 🎄
Best Wishes for A Happy New Year!
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