End-of-Year Tax Strategies: Don’t Let Taxes Haunt You!

As the year creeps to a close, it’s not just ghouls and goblins that should make you shiver—your looming tax bill might be the real fright. The good news? With the right strategies, you can ward off a haunting liability and keep more treasure in your cauldron. Here are a few end-of-year tax tricks (and treats) to consider before the clock strikes midnight on December 31.

1. Conjure Up Deductions

Like a well-cast spell, deductions can make taxable income disappear. Max out retirement contributions to IRAs or 401(k)s, prepay deductible expenses (such as mortgage interest or charitable donations), and review business expenses you can accelerate before year-end.

2. Harvest Those Tax-Losses

Got underperforming investments lurking like zombies in your portfolio? Sell them before year-end to harvest losses and offset capital gains. Just beware of the “wash-sale” rule—it’s the trick hidden behind this treat.

3. Beware the Phantom Income

Bonuses, stock options, or unexpected windfalls may rise from the grave at year’s end. Plan ahead to manage the tax bite, perhaps by deferring income where possible or bunching deductions to soften the blow.

4. Gift Without the Ghoulish Surprise

The IRS’s annual gift tax exclusion allows you to give up to a set amount per recipient without owing tax. Share the wealth with family while reducing your taxable estate—it’s a treat for everyone.

5. Don’t Let Credits Go to the Crypt

Explore available tax credits, from energy-efficient home improvements to child and dependent care. Credits reduce your liability dollar-for-dollar, making them sweeter than candy.

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Don’t let scary tax surprises creep up on you this year. At Pricewise Business Solutions, we’ll help you cast the right financial spells to shrink your tax bill. Contact us today for a consultation—before the witching hour strikes!