There’s not much time left to make tax saving moves for 2014. Here are some last minute tax saving tips that you might like to consider before January 1st, 2015:
Tax savings tips for 2014
- Make your January mortgage payment before December 31 to squeeze an extra interest deduction into 2014.
- Make tax-free gifts to use your annual gift tax exclusion for 2014. This year you can give up to $14,000 to as many individuals as you like without tax consequences. These gifts to individuals are not deductible by you; nor are they taxable to the recipients.
- Sell appreciated stock to offset capital losses taken earlier in the year and vice versa. Any excess loss can offset up to $3,000 of ordinary income in 2014, and losses greater than that can be carried to future years.
- Use your credit card to pay tax-deductible expenses by December 31 if you’re short of cash. You can deduct the expenses on your 2014 return even though you pay your credit card bill in 2015.
- If you’re required to take a minimum distribution from your retirement plan, do so by December 31 or you face a 50% penalty. If you just turned 70½ this year, you could wait until April 1, 2015, to take a first distribution.
- If a wedding or divorce is in your year end plans, be aware that your marital status as of December 31 determines your tax status for the whole year. Changing the dates of a year-end event may save taxes.
Would You Like More Tax Savings Tips?
To discuss these or other tax cutting moves you might want to consider, please give us a call now before it’s too late to act. We are here to help.