8 Opportunities To Save Tax Before It's Too Late
1. Harvesting capital gains. Year-end tax planning typically focuses on "harvesting" capital losses by selling stocks or other securities. Losses realized on those sales may offset capital gains and other income.
But your situation may call for a different strategy. If you harvest long-term capital gains, you'll generally pay a maximum tax rate of only 15%, compared with much higher tax rates on ordinary income. (If you're in the top tax bracket for ordinary income, the maximum long-term capital gain rate is 20%.)
2. Putting more in your retirement plan. Virtually everyone can benefit from a boost to retirement plan accounts. Typically, you might participate in a 401(k) or another plan at work and supplement it with savings in IRAs.
© 2018. All Rights Reserved.
- Five Bright Ideas About Year-End Tax Planning
- New Year's Resolution: Review Your Estate Plan
- 5 Estate Planning Steps To Benefit Your Elders
- Countdown To Retirement: Seven Steps To Get Ready
- 17 Year-End Moves That Can Preserve Your Tax Benefits
- Finding The Balance For Retirement Draw-Downs
- Key Components Of A Post-Divorce Estate Plan
- Five Documents At The Core Of An Estate Plan
- 10 Common Questions On Social Security Benefits
- Plan For Retirement At Different Stages Of Life
- Are You Still On Target For A Secure Retirement?
- Live Longer And Prosper In Your Golden Years
- 5 Ways That Can Help You Pay For Higher Education
- Passing Down IRA Assets? Clue In Family Members
- Should You Fly Solo In Your Own 401(k) Plan?