Believe it or not, the end of the year is rapidly approaching. So, now is the time to take a moment and start preparing your year-end tax planning for 2018. This is extra important this tax year because of the changes to the tax law which became effective in 2018. As a result, your taxes may look different this year. So, allow extra time for preparation. Getting started early is particularly important if you are a business owner, have moved to another state, or plan to make charitable contributions before the year ends.
Tax Matters
Use tax strategies to take advantage of tax-deferred growth opportunities, charitable-giving opportunities, and tax-advantaged investments…among others. During this tax planning process, you should maximize deductions and credits ahead of the busy tax season. As you consider your year-end options, sit down with your estate attorney or other financial advisors to make sure your investments continue to align with your goals, the economic landscape, and current tax law. This conversation can help identify future adjustments.
What You Need for 2018 Taxes
“Traditional” year-end planning still applies to your 2018 taxes. Make sure you harvest losses to offset gains, contribute the appropriate amount to your Individual Retirement Account (IRA) and/or Health Savings (HSA) accounts, and have taken the necessary required minimum distribution from your IRA (if applicable). Other considerations include fully funding employer-sponsored retirement plan contributions such as 401(k, 403(b) or 457 plans. The same rings true for college savings plans, such as 529 plans. You may even want to convert a traditional IRA to a Roth IRA.
Important Tax Documentation
Beyond these important points, start gathering the necessary documentation you may need for deductions you plan to claim. These include copies of statements or receipts regarding property taxes, and expenses relative to medical, dental, child care, education, moving, and heating/cooling. The new 199A deduction for business income requires additional paperwork of business owners. Work with your bookkeeper and accountant to gather necessary records now, rather than waiting until April 14.
Professional Tax & Estate Planning Advice
With changes to the U.S. tax code now in effect, make the right decisions when it comes to your year-end financial moves. A skilled tax attorney or financial advisor can help explain your options under the law and provide you with guidance so that you can make the best decisions for you, your family, and your future. If you have any questions.
About Skvarna Law
We can help you make important estate-related decisions. Contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. We provide legal services for individuals living in San Bernardino, Los Angeles, Orange and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
