5 strategies to implement now to save on your 2023 Taxes
Updated: Nov 14
We can’t believe how quickly this year has gone by. Can you believe we are in 4th quarter of the year! As the fourth quarter rolls around, now is the time to implement some tax saving strategies to save on your 2023 taxes before the year ends. I’ll be sharing 5 tax saving strategies you should implement now:
1. Bonus Depreciation
As a part of the 2017 TCJA, the IRS allows business owners to take bonus depreciation for qualified assets that were placed into service before September 17, 2017. The amount allowable for this year is 80%. Qualified assets include assets such as Machinery, equipment, vehicles and furniture. If you were thinking of investing in any of these qualified assets now may be the time to do so to take advantage of the bonus depreciation.
2. Charitable Contributions
If you think you may itemize your deductions for 2023 rather than take the standard deduction, then it may be a good idea to make additional charitable contributions. You are allowed to deduct charitable contributions up to 60% of your Adjusted gross income.
3. Maximize contributions to retirement accounts.
Do you have some extra cash you’d like to save? Use it has a contribution to your retirement accounts. For. 2023 you can contribute up to $22,500 into your 401k and $6,500 into your IRA
4. Installment Sales
This next one is for business owners. Are you thinking of selling a property soon? If so you may be able to defer some of the income taxes by making it an installment sale. This method allows you to recognize the income when you receive it.
5. Harvest Capital losses
If you expect to have capital gains from investments, you can offset those gains with capital losses by selling some investment positions that can no longer be sold for a gain. To do this you will need to examine your investment portfolio and your overall strategy. We recommend discussing your options with your Financial advisor and a CPA
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