How Do The Election Results Impact Year-End Tax Planning?
This year certainly has seen more than its fair share of disruption and many are looking forward to bidding a not-so-fond farewell to 2020. Much has been written (by us and others) about potential large changes to tax laws that might occur under a Biden administration. Although wholesale change looks less likely, assuming the Republicans retain control of the Senate, that uncertainty nevertheless remains.
Having said that, whether or not big changes to tax laws are afoot, the “every year” tax strategies are still important to consider. Although these may be somewhat mundane and easily overlooked, especially given the spectacle of the election and the spike in COVID-19 cases, they are as important and valuable as ever. They include:
- Making maximum contributions to retirement accounts.
- Realizing losses in investment portfolios.
- Charitable gifts.
- Making qualified charitable distributions from IRAs.
- Annual gifts to family members.
Continue reading for strategies to consider for your year-end tax planning.