David@valuealigned.com
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Berk's Blog

Do You Know These 3 Year-End Tax Tips?

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With so much of our attention focused on the holidays and 2016, it can be easy to forget to look for year-end tax tips that make your tax filings a better experience.

Don’t let that happen to you!

The good news is it’s not too late to make a few moves to better your 2015 tax filings, but it’s also a good time to start planning for 2016. Just like retirement, it’s never too early or too late to start planning, and we’re here to point you in the right direction.

Charitable Donations

One of my favorite year-end tax tips is to use your appreciated stocks as a donation for a charity.

By donating appreciated stocks directly, you and the charity avoid a capital gains tax when the stock is sold. The double whammy? You also increase your charitable deduction.

Look at it like this:

Say you purchased $15,000 in stock a little more than a year ago. It’s risen in value to $30,000 and you want to donate that to charity. If you sold the stock and then donated it, you’d pay a capital gains tax on the $15,000 value increase before making the donation. That limits the amount the charity receives and decreases your charitable deduction.

If you donate the appreciated stock directly, you avoid paying the capital gains tax, which gives the charity the full $30,000, and you can use the full $30,000 as a charitable deduction.

You both win.

It’s a win-win scenario, and during the season of giving I think this is a great way to give.

Adjust Your Tax Withholding Status to Match Your Taxable Income

With this year-end tax tip, you could see benefits for years to come.

Do you know anyone who always counts down the days to receiving his or her tax refund check, ready to spend it as soon as it arrives? So many people do this when they really should be minimizing their tax refund as much as possible.

Why?

That refund money is just sitting there waiting to come back to you, never increasing in value.

That’s essentially an interest-free loan to the federal government.

By adjusting your tax withholding status for next year to match your estimated taxable income, you can minimize your refund and instead invest that money in great companies’ stocks.

Make an Appointment With Your Financial Advisor

The time to start planning for 2016’s tax-filing period is now.

No matter if you’re already retired and trying to maximize your savings, or if you’re figuring out the right age to stop working with enough money to bask in post-work life, meeting with a wealth management advisor can put you on the course to your destination.

That’s what we’re here for.

At ValueAligned® Partners, we help you invest in separately managed accounts of stocks of great companies.

Did you learn something from these year-end tax tips? Learn more from us by setting up a free 15-minute financial check-up here. I’m never more than an email or a phone call away at david@valuealigned.com or 732-800-2375.