Hello again, Judy Bernhard, CPA and Resident Tax Manager with Killingsworth Spencer CPAs. I want to provide you with eight important tax tips as we start the last quarter of 2024.
Stock/Mutual Fund/Bond sales in 2024 –
If you own a securities portfolio, October is a good time to meet with your financial advisors to make certain they are keeping track of your cost basis (what you paid for the security plus any dividends) because the IRS will always assume zero cost basis on your tax return without proper documentation. It is ultimately the taxpayer’s responsibility to keep track of cost basis of any asset purchased and sold.
Gains & Losses in your portfolio –
Ask your financial advisor about any security that might not be performing to expectations and see if now is the time to match up some gains with any losses to reduce your taxes.
Maximize your retirement plan contributions –
If you have a qualified retirement plan such as a 401(k), 403(b) or an IRA, check with your financial advisor and your accounting professional to see how much more you may contribute before year end. This is an easy way to reduce your taxable income and save towards your retirement.
RMD’s – Required Minimum Distributions –
If you are over 70 ½ as of last April 15th and you have a retirement account (other than a Roth IRA), you are required to take minimum distributions each year. The amount is established by the government and administered by the Retirement plan provider. Failure to take a minimum distribution will result in a 50% income tax on the amount that was required to have been withdrawn that year. Make sure you contact your CPA or financial advisor to ensure compliance and avoid additional taxes.
GA Flim Tax Credits –
You may want to consider buying GA Film Tax Credits to help offset your GA income tax liability. Credits are available to individuals, corporations, Trusts, Partnerships, and LLCs. You can typically buy these credits for 88 cents to 92 cents on the dollar through a qualified film tax broker. These Tax Credits carry forward for five years and can offset any penalties for underpayment of state income tax.
Charitable Contributions – ‘Tis the Season to Give’
The IRS has been cracking down in recent years on charitable gifts made at the end of a calendar year or at the beginning of a new year to have them count for the previous year. Possession of the check by the charity or a credit card charged by the last banking day of the calendar year is generally sufficient to the IRS.
Annual Exclusion Gifts –
Any gift of cash or equivalent must be withdrawn from the Donor’s account by the last banking day of the year. The annual exclusion amount for 2024 is $18,000. There is no limit as to the number of people a person may make this type of gift.
Business owners have additional ways to save on taxes –
If you are the owner of a small business, you are entitled to additional tax breaks and could benefit from tax planning.
As always, if you have any questions, or you need tax planning, please contact us at 770-552-8286 or visit us at killingsworthspencerllc.com
Disclaimer: This post is for general information only and should not be taken as legal or financial advice.