Year-end tax moves to make now

There are a couple of weeks left in 2024. That gives you a little time to do any number of things that can reduce your taxes and boost your bottom line for this year.

There are a couple of weeks left in 2024. That gives you a little time to do any number of things that can reduce your taxes for this year, boost your bottom line, or spare yourself financial penalties. Here are five options: Review any holdings you have in a taxable investment portfolio to see where there are gains and losses. Then consider whether it may make sense for you to capture some of your gains by selling at least a portion of one or more holdings and then offsetting the capital gains tax you’d otherwise owe by also selling some investments that are currently worth less than you bought them for. “If you have assets that have appreciated in value, consider tax-gain harvesting, (which is) selling assets that have appreciated in value when you have losses to offset the gain,” said Dan Snyder, a certified public accountant and director of AICPA Personal Financial Planning. The rule is your tax losses can offset up to 100% of your taxable gains realized that same year, plus up to $3,000 in ordinary income. So if you have $10,000 in gains and $12,000 in losses, you won’t owe any capital gains tax on the $10,000, and you will be able to deduct $2,000 from your regular income. In addition, you will be allowed to carry over your remaining $1,000 and apply it in a future tax year.