Year end tax planning

[Bruce D. Kowal]

A few items here I want to point out.  

[1]  If you already use a CPA/EA , then they have a tax program which is flexible, and he can run a bunch of What-if scenarios for you, for the current year.  A lot of Members have these What-if questions, and frankly, the answers are with your current CPA/EA.   

[2]  This is the time of year for CPA's to run tax projections for their clients, especially if you have a complicated tax return.  Lots of properties and transactions.  Stock market losses too.  If you have unrealized market losses and realized gains from sale of properties, time to plan.  The point is that you should never be surprised when your CPA tells you that you have a balance due.  You should already know that before Jan 15, 2023 at the latest [that's the last day for estimated tax payments without penalty].  

[3]  If you had large gains already this year, and are on salary, you might want start paying taxes on those through increased withholding.  Why?  To avoid the penalty for underpayment of taxes.  i.e.  the Govt like to get its money close to when you earn it, not when you get around to it.  And it turns out that IF you pay taxes through withholding, even though you might have earned it in January [a bonus?], by paying through withholding IRS deems it be timely paid.

If none of this makes sense, let me know.