On November 10, 2015, the Wall Street Journal published an insightful article by Bill Bischoff that discussed some year-end tax planning strategies that may be applicable to you. Included in the strategies are:
- Prepaying 2016 deductible expenses, such as your January 2016 mortgage payment, in 2015, if you expect your 2015 earnings to be greater than your 2016 earnings;
- Donating appreciated stock to charity without first selling it, which enables you to deduct the full value of the stock without the capital gains being included in your income;
- Selling stocks that have depreciated in value before donating the proceeds to charity, which enables you to claim the loss on your tax returns;
- Donating money from your retirement account directly to a charity, which allows those funds to bypass your income altogether, and which counts towards any required minimum distribution; and
- Updating your estate planning to account for any changes that have occurred and to take advantage of the current generous exemptions.
You can read the entire article by clicking here.