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End of the Year Tax Tips for Individuals and Businesses

With the most comprehensive tax reform we have seen in years right around the corner, tax planning is a priority. As the year is winding down, we at SD Associates P.C. want to remind our clients and business owners of several tips you can do now, to help maximize your tax refund and minimize the taxes you may owe in the upcoming year.

    1. Tax deductions – A smart and generous way to lower your tax bill is by increasing your deductions before the year ends.  Tax-deductible charitable contributions can help reduce your taxable income. Contributing appreciated securities has multiple benefits: you receive a tax deduction for making the gift, and avoid a future capital gain tax liability from your investments. The charitable organization gets the same benefit and doesn’t owe taxes upon receipt or sale of the shares.


    1. Reduce taxable income through pre-tax contributions to a company retirement plan, self-employed retirement account or IRA.


    1. Defer your income – Does your employer provide an end of the year or holiday bonus? If so, you can potentially defer additional income in 2017 by taking the bonus in 2018.


    1. Minimizing capital gains and realizing investment losses can help reduce your tax burden. Be sure to review any personally managed investment accounts. If you sell a security at a loss, you can’t re-purchase the same or any “substantially identical” investment for 30 days, or you risk triggering a wash sale and foregoing the loss.


    1. Other deductions that are good options to pull into 2017 include estimated state and local income taxes due January 15 and property taxes due early next year. There are two important points to keep in mind. First, pulling deductions into 2017 can be a big mistake if you are impacted by the alternative minimum tax. Second, if a new tax bill passes and eliminates some or all of the itemized deductions, then this might be your last chance to benefit by accelerating them into 2017.


  1. The IRS warns taxpayers about the dangers of identity theft and fraudulent returns. It’s still important to be vigilant and take every opportunity to protect your personal information.


Whether you are a business owner or an individual, saving money is always important. At SD Associates P.C., we partner with our clients to ensure that we are always saving you money and educating you on ways to help your bottom line.  We are a full-service CPA and business advisory firm in Montgomery County, serving clients in Philadelphia and neighboring counties (Montgomery County, Bucks County, and Delaware County). For more information on our services contact SD Associates P.C. today at or call 215-517-5600.

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