Here are 3 things you can easily do before the end of the year!
For those people with capital gains from sales of stock or from mutual fund distributions, many know that they can offset those gains with a loss, but few actually sit down and do the annual exercise. It is a good idea to meet with a Tax Planner to look at your losses or winnings. By selling those losing assets, you can offset your other investment gains and end up with an equivalent of no capital gains. Many people would rather not sell their underperforming assets, because they believe they’re about to “come back” and wouldn’t dare wait the 31-day waiting period to repurchase the same asset as an allowable purchase but there are many legal “work a rounds” to that rule. The Market has been and is forecasted to continue to be volatile , you should be meeting and discussing a plan that can be executed on a set number during a Dip or Peak.
De-characterization of Roth rollovers pre market corrections. Many people have converted monies from an IRA to a Roth IRA on a high up to a few months ago, or have also inherited taxable IRAs from a relative who has passed away. This leaves them exposed to an unintentional tax bill. If you rolled money to a Roth during the year and now that stock account is worth much less, the IRS will allow you to “unroll” that Roth back to regular IRA under certain circumstances. Don’t feel that because you’ve converted money to a Roth IRA, and then had another tax anomaly take place, that you’re stuck with that conversion. Once a year, you can “Un-Roth” money back to an IRA to undo a taxable event.
One thing that almost everyone you speak to agrees on is the fact that in the future, 2018 and beyond, Tax Brackets and Tax Rules that just changed are an issue. Also IRS “letter audits” are on the rise and the US is still in financial trouble. If your current Advisor says, “Don’t let the Tax tail wag the dog” as a response to tax planning questions …fire them! They are side stepping a major factor on your future financial security!Go Back