EOY Tax Planning: Don't Forget

(Scroll down for the free EOY Tax Checklist)

As we approach the end of 2024, it's time for a quick tax planning check-up. For high-earning sales professionals, strategic moves made in December can significantly impact your tax bill come April.

Three key areas deserve your attention right now:

First, review your tax bracket position. With the 2024 threshold for the 32% bracket at $191,950 ($383,900 if married filing jointly), year-end commission timing could push you into a higher bracket. Understanding where you stand lets you make informed decisions about income timing and deduction strategies.

Second, if you've sold or are considering selling investments this year, pay close attention to holding periods. With long-term capital gains rates maxing out at 20% compared to short-term gains being taxed as ordinary income (up to 37%), the timing of your investment sales can make a substantial difference. Additionally, if your income exceeds $200,000 ($250,000 if married filing jointly), remember these gains may be subject to the additional 3.8% Net Investment Income Tax.

Finally, look at your investment accounts for tax-loss harvesting opportunities. You can offset capital gains and deduct up to $3,000 against ordinary income, which could be particularly valuable given this year's market volatility.

Want a comprehensive end-of-year tax planning checklist? I've put together a detailed guide covering these points and many more. [Download it here - link] to ensure you're not missing any key tax-saving opportunities before December 31st.

As always, consult with your tax advisor about your specific situation. And if you'd like to discuss how these strategies apply to your financial plan, don't hesitate to reach out.

-Rob

P.S. The checklist is complementary and includes specific thresholds and strategies for 2024. Download it now to start your year-end tax planning.

P.S.S. Want to see how we can help you manage taxes, invest money, protect your assets and reach your goals faster than you can on your own?

Click Here

Securities offered through LPL Financial, Member FINRA/ SIPC. Investment advice offered through IHT Wealth Management, a registered investment advisor. IHT Wealth Management and AutomotiveWealth are separate entities from LPL Financial. 

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