Year End Money Moves

Year End Money Moves

What has changed for you in 2019? Even if your year has been relatively uneventful, year-end is still a good time to get cracking and see where you can plan to save some taxes and/or build a little more wealth.

Do you practice tax-loss harvesting, charitable gifting, or asset rebalancing on an annual basis? The art of tax-loss harvesting involves taking capital losses (selling securities worth less than what you first paid for them) to offset your short-term capital gains. This practice is part of an overall annual review which can include charitable contributions, re-allocation of assets, and reviews of IRA and HSA contributions among other things.

Do you want to itemize deductions? You may just want to take the standard deduction for 2019, which has increased from $12,000 to $12,200 for single filers and from $24,000 to $24,400 for joint filers. If you think it might be better for you to itemize, now would be a good time to get the receipts and assorted paperwork together.

While many miscellaneous deductions have disappeared through 2025, some key deductions remain: the state and local tax (SALT) deduction, now capped at $10,000; the mortgage interest deduction; the deduction for charitable contributions, which now has a higher limit of 60% of adjusted gross income; and the medical expense deduction. If you discover that you have withheld too little on your W-4 form so far in 2019, you may want to adjust your withholding before the year ends.

Consider talking with a financial or tax professional now rather than in February or March. Little year-end moves in the areas mentioned above can help you improve your short-term and long-term financial situation.

Please feel free to contact us with any questions you might have. All The Best!

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