December 10, 2024
December 2024: Year-End Tax Moves
Subject: Last-Minute Tax Strategies Before Year End
December is here, and with it comes the last chance to optimize your 2024 taxes.
Tax-Loss Harvesting
If you have investments with losses, consider selling them before December 31st to offset gains and reduce your tax bill. You can:
- Offset capital gains dollar-for-dollar
- Deduct up to $3,000 in ordinary income
- Carry forward unused losses to future years
Maximize Retirement Contributions
You have until December 31st to max out your 401(k) and until April 15th for IRA contributions. Don't leave tax-advantaged space on the table.
Charitable Giving Strategies
- Donate appreciated stock instead of cash (avoid capital gains tax)
- Bunch donations using a Donor-Advised Fund
- For those 70½+: Make Qualified Charitable Distributions from your IRA
HSA Triple Tax Advantage
If you have an HSA, contributions are due by December 31st (not April 15th like IRAs). This is one of the most tax-efficient accounts available.
Next Month: We'll share our top wealth-building predictions for 2025.
Stay strategic, Private Wealth Collective Team