In our uncertain economic climate it is more important than ever to maximize your tax savings. It is never too early to start your tax planning for the upcoming year. Kevin Aaron, Tax and Business Advisor with Simons Bitzer & Associates highlights three potential tax saving tips that could help you realize a financial benefit.
1.)    Donate Appreciated Stock instead of cash to your favorite charity – This will allow the taxpayer to take a deduction for the future market value of the stock without recognizing the gain as income.
2.)    Evaluate the ability to take Itemized Deductions vs. Standard Deduction – If the taxpayer is marginally around the Itemized Deduction amount, utilizing a strategy for bunching deductions into a single year and taking the Standard Deduction in the alternate year will result in tax savings when the two years are looked at as a whole.  Similarly the same strategy may apply to deducting Medical Expenses when compared to the 7.5% AGI floor.
3.)    Harvest tax losses on stock holdings that are trading below the original investment to offset capital gains realized year to date and/or create a capital loss of up to $3,000.   The investor needs to be mindful of the 90 day wash rule that requires them to not repurchase the stock for 90 days in order to claim the loss.
For more information on tax savings tips or for help planning for the upcoming fiscal year contact Simons Bitzer & Associates at (317) 782-3070 or email Raegan Potter at [email protected].