End of The Year Tax Planning

  • Post category:Taxes

There are only a couple of weeks left in 2013. It may seem impossible —that the year has flown by too quickly— but the calendar doesn’t lie. Here are seven things to consider doing before the year’s over to possibly reduce your 2013 tax burden.

  1. Sell stocks with losses. If you have an investment that’s a loss for you right now and you don’t think it’s going to come back, you might want to sell it in order to write the loss off against other investment income. Remember to be considerate of wash sale rules, which state that in order to get the deduction, you can’t buy a “substantially similar” position in the 30 days before or after the sale.
  2. Hold off on selling stock that’s increased in value. If you want to avoid paying taxes on your gains, wait until the calendar turns and January 1, 2014 rolls around before you sell any stock or other investments with gains.
  3. Pay certain expenses. If you have any expenses that can result in a tax deduction, such as property or estimated taxes, don’t wait until 2014 to pay them if you can use the deduction in 2013.
  4. Pay for classes. If you’re planning to take any classes in college during the 2014 spring session, make sure you’re enrolled and your classes are paid for by the end of December. That way, you can take advantage of the American Opportunity or Lifetime Learning tax credits for 2013 (assuming you haven’t already maxed these credits out).
  5. Think about donating to charity. If you itemize your deductions, then now’s a great time to add in a few last-minute charitable contributions for 2013. If you want to give your favorite charity an extra bump, you might talk to human resources to see if your employer matches contributions.
  6. Go to the doctor. Wait—this is a post about end-of-the-year tax planning, not medical treatment, right? Okay, that’s true, but if you itemize your deductions, you may qualify for medical expense deductions for the treatment you pay for in 2013, which could make an extra trip to the doctor worth its weight in stethoscopes.
  7. Don’t take that last distribution. If you’re planning on taking a distribution from your Traditional IRA or other taxable distribution this month, you might consider holding off a few weeks so that you don’t have that added tax burden in 2013.

At Kramer Wealth Managers, we want to help make tax time simple and stress-free. Contact us today to find out how we can help you better manage your tax burden in 2014.

This material is intended for informational purposes only and should only be relied upon when coordinated with individual professional advice. Neither Osaic Wealth nor its representatives offer tax or legal advice. For assistance with these matters, please consult your tax or legal advisor.

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Adrianna Rocha

Client Relations Specialist

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Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with Osaic Wealth.