30 DEC

Four tax strategies you can use to reduce your income taxes and increase your 20% Pass-Through Income Section 199A deduction

by Jennifer Eubanks

Strategy #1: Harvest your capital losses. If capital gains are hurting your Section 199A deduction, you still have time before the end of the year to harvest your capital losses. These losses can then be used to offset those “harmful” gains.

Strategy #2: Do good and do well by making charitable contributions. You can use itemized deductions to reduce and/or eliminate “threshold” problems and increase your Section 199A deduction. Charitable contributions are the easiest way to increase your itemized deductions before the end of the year.

Strategy #3: Be sure to make your retirement contributions. Any retirement contributions you make directly reduce your taxable income. And you still have the money growing inside your retirement account. If you’ve got the money, funding your retirement accounts is a complete no-brainer.

Strategy #4: Buy bonus assets. Thanks to 100-percent bonus depreciation and Section 179 expensing, you can write off the entire cost of most assets you buy and place in service before December 31, 2018.
 

Jennifer Eubanks

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