It is tax season, which means time is at a premium. TGIF 2 Minutes is designed for this concept. Therefore, a 1-minute read today!
Preparing tax documents, expense spreadsheets, records of charitable deductions, W-2 forms, 1099’s, K-1’s and all the rest can really be a hassle. Here are a few bright spots:
- Learn something right now this year from every time you find yourself saying, “I am going to do this differently next year!“
- Whether it is your filing system for tax documents and charitable deductions or set-up of online folders for rental property files, go overboard with keeping better track along the way, starting now for tax year 2024.
- Make sure to ask your financial adviser about tax loss harvesting this calendar year. Last year there were UP months in markets and DOWN months. Make sure your adviser is possibly using the market’s down months to a tax advantage in non-IRA accounts.
- If it is not already obvious, have a CPA.
- Ask your financial adviser for assistance in compiling or finding tax documents. This task is always something with which I am happy to assist – with advance notice – for my clients.
- Look at ways to make changes and tweaks to the way you are contributing to 401k and IRA accounts while it is still early in 2024. Changes can involve:
- increasing/decreasing contribution rate
- creating a mix of before- and after-tax (Roth) contributions
- spreading contributions over the course of the entire year
- Consider Roth IRA conversions in 2024.
Tax time is not always the most pleasant time of the year but all we can do is make the best of it. Thank you for all the positive feedback in recent weeks!
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied upon for, tax, legal or accounting advice.