Reminder - you can take advantage of the overnight crypto dip. Crypto is an asset that allows you to tax loss harvest without being subject to the loss sale rule (for now..)
Sell your crypto and buy it back, realize the loss.
Here are 6 other year end savings tips - THREAD 👇🏼
Sell your crypto and buy it back, realize the loss.
Here are 6 other year end savings tips - THREAD 👇🏼
1. Defer income/Expedite expenses -
Always important not to let the tax tail wag the economic dog. That goes with any financial advice.
Income that you know you can defer to 2022, or expenses that you can bring forward can both be effective tax savings strategies.
Always important not to let the tax tail wag the economic dog. That goes with any financial advice.
Income that you know you can defer to 2022, or expenses that you can bring forward can both be effective tax savings strategies.
2. Get into debt!
Don't tell Dave, but you can purchase business equipment, vehicles, etc using debt toward the end of the year and use bonus depreciation. Walk out of a car dealership on 12/31 with zero down and a large write off.
Obviously only buy stuff you need folks!!
Don't tell Dave, but you can purchase business equipment, vehicles, etc using debt toward the end of the year and use bonus depreciation. Walk out of a car dealership on 12/31 with zero down and a large write off.
Obviously only buy stuff you need folks!!
3. Be generous -
If you itemize you get to deduct cash/items you give to charity.
You can donate cash or appreciated stock or crypto to a charitable organization at the end of the year for a write off.
We used @TheGivingBlock to donate to @FeedingAmerica for @BromatoNFT.
If you itemize you get to deduct cash/items you give to charity.
You can donate cash or appreciated stock or crypto to a charitable organization at the end of the year for a write off.
We used @TheGivingBlock to donate to @FeedingAmerica for @BromatoNFT.
The best part - by donating appreciated stocks or crypto, you get to double dip.
You get the full benefit of the donation without having to recognize the gain on appreciation.
This is one of the rare opportunities in the code where you gain basis without income recognition.
You get the full benefit of the donation without having to recognize the gain on appreciation.
This is one of the rare opportunities in the code where you gain basis without income recognition.
4. Max out qualified accounts -
Set up and max out 401K plans and pensions to the extent they are available to you. Also look at backdoor Roth and conversion strategies at this point.
That all needs to be done before EOY.
Set up and max out 401K plans and pensions to the extent they are available to you. Also look at backdoor Roth and conversion strategies at this point.
That all needs to be done before EOY.
5. Optimize your salaries - If you own an S-Corp or Partnership you can stand to benefit by optimizing payroll for you and your employees.
I wrote this thread last year that saved several people 6 and 7 figures:
I wrote this thread last year that saved several people 6 and 7 figures:
https://twitter.com/baldridgecpa/status/1342825690975055873?s=20
6. Tune up the small stuff -
Other year end reminders that may make a small or large difference:
- Spend your FSA
- Contribute to 529 plans
- Make an RMD if required
- Cap loss harvesting (not just with crypto!)
- Optimize sales/property taxes
- Get your bookkeeping in order
Other year end reminders that may make a small or large difference:
- Spend your FSA
- Contribute to 529 plans
- Make an RMD if required
- Cap loss harvesting (not just with crypto!)
- Optimize sales/property taxes
- Get your bookkeeping in order
As 2021 winds down, it's not too late to make choices that can have huge benefits for your tax burden this year.
Think ahead and optimize now!
Think ahead and optimize now!
If you enjoyed this tweet please share it, and give me a follow for more like it.
For more of my work start here:
For more of my work start here:
https://twitter.com/baldridgecpa/status/1333953486208241665?s=20
What are you other favorite year end tips #TaxTwitter?
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