Maximize deductions and minimize taxes with these strategies
- Consider deferring income to 2024 to potentially lower your tax bracket
- Accelerate deductions to maximize your itemized deductions
- Give appreciated securities instead of cash to maximize your charitable deductions
- Lock in losses by selling underperforming investments to offset gains
- Check your mutual funds’ planned distributions to avoid unexpected tax liabilities
- Begin a three-year Roth rollover to convert tax-deferred assets into a tax-free Roth IRA
- Take advantage of tax-free annual gifting and maximize contributions to retirement plans
Tax season is approaching, and it’s never too early to start planning to lower your tax bill. Here are 7 strategies to consider:
1. Consider deferring income to 2024 to potentially lower your tax bracket.
2. Accelerate deductions to maximize your itemized deductions.
3. Give appreciated securities instead of cash to maximize your charitable deductions.
4. Lock in losses by selling underperforming investments to offset gains.
5. Check your mutual funds’ planned distributions to avoid unexpected tax liabilities.
6. Begin a three-year Roth rollover to convert tax-deferred assets into a tax-free Roth IRA.
7. Take advantage of tax-free annual gifting and maximize contributions to retirement plans.
By implementing these strategies, you can minimize your tax liability and keep more money in your pocket.
Public Companies: Carolina Wealth Management (), Bernstein Private Wealth Management (), Bessemer Trust (), Delaware Ivy Value fund ()
Private Companies:
Key People: Derek Pszenny (Senior Wealth Manager at Carolina Wealth Management), Robert Dietz (National Director of Tax Research for Bernstein Private Wealth Management), Stephen Baxley (Head of Tax and Financial Planning at Bessemer Trust)
Factuality Level: 8
Justification: The article provides specific tax strategies and advice from experts, such as deferring income, accelerating deductions, and taking advantage of tax-free gifting. The information is practical and based on current tax laws and regulations. However, it does not provide a comprehensive overview of all possible tax strategies, and some strategies may not be applicable to all individuals. Overall, the article is informative and provides useful tips for reducing tax liability.
Noise Level: 7
Justification: The article provides some useful tips for reducing tax bills, but it lacks depth and originality. It mainly reiterates common strategies such as deferring income, accelerating deductions, and taking advantage of tax-free opportunities. The information is relevant, but it lacks a thoughtful analysis of long-term trends or antifragility. The article also does not hold powerful people accountable or explore the consequences of decisions on those who bear the risks. Overall, it provides basic information without providing much new knowledge or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information and tips on tax planning and strategies for retirees and individuals to reduce their federal tax bill. It may impact financial planning and investment decisions for individuals and potentially tax-related industries.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article focuses on tax planning and does not mention any extreme events or their impacts.
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