Posted about 2 months ago

Year-End Tax Planning for 2024

“When you know better, you do better.” - Maya Angelou

Important: Always consult your tax strategist. This blog is not tax or legal advice—just friendly advice from your favorite tax enthusiast!

Ah, November! The leaves are falling, Thanksgiving is around the corner, and we’re all trying to dodge the political debates like they’re a game of dodgeball. But while you’re avoiding those heated discussions, let’s focus on something that can really make a difference: your finances!

As we approach the end of 2024, here are some key tax moves to consider. Think of it as your financial checklist—like making sure you have enough turkey for Thanksgiving dinner!

1. Register Your Corporations and LLCs

Remember to register all your business entities by December 31, 2024. If you miss this deadline, it could cost you $500 a day per entity! That’s a lot of pumpkin spice lattes! www.fincen.gov/boi

2. Consider a Roth IRA Conversion

Thinking about converting your 401(k) or traditional IRA to a Roth IRA? You’ll pay taxes now, but enjoy tax-free growth later. It’s like paying for dessert upfront so you can enjoy it guilt-free later!

3. Maximize Business Deductions

Take advantage of the Section 179 Deduction for qualifying vehicles (like certain SUVs and trucks). And don’t forget about bonus depreciation for new or used equipment—this benefit is like a limited-time offer, so act fast!

4. Plan Your Business Expenses

Decide whether to pay certain business expenses this year or defer them to next year. Your tax pro can help you strategize—think of them as your financial GPS!

5. Look Ahead to 2025

What will your income look like in 2025? Should you move income into 2024 or defer it? Proper planning can help you reduce taxes in both years. It’s like trying to figure out if you should buy the holiday gifts now or wait for the post-Christmas sales!

6. Document Virtual Currency

If you have cryptocurrency, gather your documentation. The IRS is watching this closely—like a hawk eyeing its next meal!

7. Charitable Giving

Consider making charitable donations. Not only does it help others, but it can also provide tax benefits. It’s a win-win—like finding a $20 bill in your winter coat! Check out our Nov 11th blog, Maximize Your Impact--Charitable Giving.

8. Adjust Your W-2 Withholding

Review your W-2 withholding to ensure you’re not overpaying taxes throughout the year. Keep more of your hard-earned cash instead of giving Uncle Sam an interest-free loan!

9. Spend Down Your Flexible Spending Account (FSA)

If you have an FSA, use your funds before the year ends. Otherwise, it’s like letting your leftovers go to waste—nobody wants that! Last week’s blog covered HSA & FSA.

10. Maximize Your Workplace Retirement Accounts

Contribute the maximum to your workplace retirement accounts, like a 401(k), especially if your employer offers matching contributions. That’s free money! For real estate investors, keep funds where you can control them and expect cash flow now. Remember, the 401(k) deadline is December 31, but you can still contribute to IRAs until April 15, 2025.

By taking these steps, you can make a positive impact on your financial situation as we close out 2024. Remember, tax planning opportunities end on December 31st, so don’t wait until the last minute—like trying to find a parking spot at the mall during the holidays!

Warmly, Janet and Mr. Turkey