5 Year-End Planning Considerations for Individuals
- Sale securities with losses to offset current year capital gains. A net capital loss (prior year capital loss carryovers plus current year net capital gain or loss) up to $3,000 can be deducted against ordinary income in the current year.
- Make charitable contributions by year end. This is a good time to clean out some old items you do not use anymore. Be sure to get a receipt. You should also consider donating appreciated assets (i.e. stocks, bonds, land).
- Increase the contribution to your retirement plans and IRAs.
- Bunching of itemized deductions. If your itemized deductions are just below the standard deduction you may benefit from “bunching” your deductions. For example: You could pay your 2014 real estate taxes in January of 2015 and your 2015 real estate taxes in December 2015. This may allow you to itemize your deductions every other year.
- Review your FSA (flexible spending account) funding for 2015 so you get the most out of this benefit. These designated contributions are required to be established prior to January 1 and cannot be changed unless you experience a qualifying family status change.
