As 2019 draws to a close, Metroplex Wealth is working with many of our clients on proactive tax planning. Sure, it’s something that is important to consider throughout the year, but now is the time to assess if you can make any adjustments that will prove fruitful on your 2019 tax returns. Here are 5 things our advisors at Metroplex Wealth urge you to consider before the new year:
Is now the time to make a sizeable charitable gift? The 2017 Tax Cuts and Jobs Act (TCJA) made changes to various deductions, but charitable giving deductions have remained relatively untouched in terms of taxation. This means you’ve got a great opportunity to make some charitable gifts and improve your tax situation in the process.
Give Cash this Holiday Season
Take advantage of the $15,000 ($30,000 if married) annual exclusion gift, allowing you to give up to this amount in cash or properties all tax-free. This may be a good strategy if you’d like to pass assets along to your children without reducing your lifetime exemption from gift and estate tax.
With Income, Timing is Everything
Consider your tax bracket for 2020? Do you anticipate it being lower than 2019? If so, you may want to defer income until after Jan. 1 to offset the tax burden. The opposite is true if you’re expecting a great rise in income next year.
Give to Tax Advantaged Accounts
Now is a great time for maxing your contributions to 529 plans, trusts, and other tax advantaged accounts. Income in these accounts is not taxed as long as its used according to the rules set forth in the plan.
If you have questions and want to see if you need to make any adjustments for tax planning before the new year, please give us a call at Metroplex Wealth in Southlake, Texas. Our proactive tax planning department can help you make sound decisions that protect your hard earned assets.