As 2023 winds down, here’s a list of tax moves you can make before yearend to ease your tax burden.

  • Health Savings Account (HSA) Contributions. This plan is effectively a Traditional IRA that you can use for current medical expenses. You must have an HSA-compatible health insurance plan. Contributions up to $3850 for individuals and $7750 for a family plan. Additional $1000 catch-up contributions for individuals age 55 and up.
  • Maximize your retirement contributions. Use your 401(k) or Traditional IRA to the fullest by maxing out your 2023 contributions.
  • Roth IRA conversion. This will cost you in taxes now, but generates massive tax-savings down the road.
  • Charitable contributions. If you itemize your deductions, this can be a great way to feel good while saving on taxes. Don’t forget to gift appreciated stock when possible.
  • Energy tax credits. There’s still time to do those needed energy improvements on your house. Check with your state for additional rebates that may be available.
  • Business expenses. Don’t forget your mileage and cell phone usage!
  • Home office. Do you have a space that you use regularly and exclusively for your business? That’s an expense!
  • Harvesting tax losses. If you have stocks that are underwater, now might be a good time to sell and take advantage of the losses.
  • College Savings plans: ESAs and 529s. These provide great tax savings down the road for you or your family members. Check with your state to see if there are matching contributions or deductions on your state return.
  • Estate planning and gifting. Avoid taxes later by taking advantage of your annual gift tax exclusion.

Bonus for business owners: S Corporation Election. This simple strategy can save you thousands or even tens of thousands of dollars in self-employment tax annually. Email us today to see if this will work for you.

Bonus for real estate investors: Cost Segregation Study. We now offer cost segregation studies to our clients. This will correct the way your real estate is being depreciated, speed up your depreciation, and save you a lot in taxes. Email us today to see if this strategy will work for you.