Year End Tax Planning

With the end of the year approaching now is the time to look for opportunities to save on income taxes. Here are some items you should look for.

• Determine whether bunching deductions into 2016 or 2017 will enable you to itemize. 
• Maximize the $14,000 per donee annual gift tax exclusion if estate taxes are a concern
• Maximize contributions to retirement plans
• Look to offset any capital gains with any losses you might have, don't forget you can claim an extra $3,000 per year in losses over gains
• Estimate income and deductions year-to-date. Consider if accelerating or delaying income can reduce your tax bill
• If you are over 70 1/2 and have not taken you required minimum distribution from an IRA, consider making a direct contribution from your IRA to a qualified charity
• Homeowners can claim a credit of up to $500 for energy improvements (limited to $200 for windows) but only if completed before 12/31/2016
• If you will be paying college tuition in 2017, consider making a contribution to your state's 529 plan in 2016, if the state allows a deduction for 529 plan contributions

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