Many popular tax-planning strategies are on the chopping block as Democrats debate how to pay for their $3.5 trillion spending package. However, now is the time to consider year-end moves to lower next year’s tax bill, regardless of what happens in Congress.
“Year-end tax planning should be done every year — not just when there are impending legislation changes,” said Marianela Collado, a certified financial planner and CPA at Tobias Financial Advisors in Plantation, Florida.
While it’s difficult to predict how tax law changes will shake out in Congress, here are some strategies to consider as the year winds down.
Filers may consider tax-loss harvesting, which allows them to offset capital gains with losses. Investors with more losing assets than winners may even deduct up to $3,000 against their regular income.
“If you are facing an unusually high-income year or had tremendous losses, this might be a good strategy,” said Ashton Lawrence, a CFP with Goldfinch Wealth Management in Greenville, South Carolina.
Read more at CNBC
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2021