Year-end is literally days away, but there’s still time to reduce your 2015 tax liability as long as you take action by December 31. Consider these strategies:
- Pay your 2015 property tax bill that’s due in early 2016.
- Make your January 1 mortgage payment.
- Incur deductible medical expenses (if your deductible medical expenses for the year already exceed the applicable floor).
- Pay tuition for academic periods that will begin in January, February or March of 2016
(if it will make you eligible for a tax credit).
- Donate to your favorite charities.
- Sell investments at a loss to offset capital gains you’ve recognized this year.
- Ask your employer if your bonus can be deferred until January.
In certain situations, these strategies might not make sense. For example, if you’ll be subject to the alternative minimum tax this year or be in a higher tax bracket next year, taking some of these steps could have undesirable results.
If you’re unsure if these strategies are right for your tax situation, contact us.
Hal Zemel, a Tax Principal at Berdon LLP, has more than 20 years in public accounting and advises businesses in the real estate, service, and manufacturing sectors.