Chapel Hill Getting Ready for Tax Season - (919) 847-6800

  • Check Withholding and Tax Estimates – November and December are busy times for us, setting up tax planning meetings, enacting year-end strategies, making retirement plan decisions. If you are a business owner and have not yet scheduled our year-end meeting, please do so ASAP. If you are a W-2 earner and have concerns, please reach out to us in the very near term.
  • Marital Status – Did you marry or divorce this year? Please contact us to discuss how that affects your personal taxes.
  • Year-End Gifting – Are you giving someone more than $14,000 this year? Are you confused about gifting/estate taxes/gift taxes? Please reach out to us at your convenience to discuss.
  • Convert Ordinary Income into Qualified Dividend Income – Consider shifting mutual funds and other equity investments into dividend paying equities to take advantage of the 15% rates that are more attractive than the ordinary tax rates. We can work with your existing financial planners in this area.
  • Postpone Income / Accelerate Deductions – This is classic tax strategy, but it is always important to reinforce this concept. This is even more important considering the current proposed tax bill. If you mortgage exceeds $500,000 consider paying the January 2018 mortgage payment in December 2017.
  • Prepay business expenses on a credit card to get the expense into the 2017 calendar year. This applies to charitable contributions!
  • Dispose of passive activities (rental homes) before year-end to utilize suspended losses. It is a great real estate market. If you have been thinking about selling that rental property, talk to us about the potential tax advantages of doing that.
  • Cultivate stock losses prior to year end. You can buy back the security after 31 days but why not lock in some losses, and even use the proceeds to invest elsewhere.