TRADITIONAL YEAR-END STRATEGIES

Some traditional year-end planning strategies are important to maximize benefits in connection with your personal tax situation. The following are traditional income and deduction acceleration and deferral strategies you should consider. Defer if your income is higher this year then it will be next year, or accelerate if the opposite occurs.

Income Deferral or Acceleration:

– Enter into installment contracts
– Defer or Receive bonuses before January
– Hold or Sell appreciated assets
– Accelerate income to use available carryforward losses
– Hold or Redeem U.S. Savings Bonds
– Accumulate or Declare special dividend
– Postpone or Complete Roth conversions
– Delay or Accelerate debt forgiveness income
– Minimize or Maximize retirement distributions
– Delay or Accelerate billable services
– Structure or Avoid mandatory like-kind exchange treatment
– Deductions and Credits Acceleration or Deferral
– Bunch itemized deductions into 2014 and take standard deduction in 2015 or take standard deduction in 2014 and bunch itemized deduction into 2015
– Pay bills in 2014 or postpone payments until 2015
– Pay last state estimated tax installment in 2014 or delay payment to 2015
– Consider AGI limitations on deductions or credits
– Consider net investment interest restrictions
– Take advantage of passive activity income and losses

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