Charitable
Gifts
Capital
Losses
Retirement
Plans
Estate &
Gift Exemption
Charitable
Gifts
Estate &
Gift Exemption
Retirement
Plans
TIP 1:
Consider bunching charitable deductions into the year in which you will receive the greatest benefit. If your taxable income is projected to be less in 2019 than in 2020, then bunching contributions in 2020 may provide a greater opportunity to lower your tax liability.
TIP 1
Trusts
Trusts
Top 5 Tax Planning Strategies for Individuals
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TIP 2:
You could also consider donating appreciated stock with low basis to
a public charity. You will receive a contribution deduction of fair market value and won’t have
to recognize the unrealized gain.
TIP 2
Charitable Gifts
TIP 1
TIP 2
TIP 2:
When using this strategy, be careful not to run afoul of the wash sale rules if you repurchase similar securities previously sold for a loss.
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TIP 1:
Harvesting stock losses can be a powerful tactic to lower your taxes. The losses can be taken against capital gains (and possibly other income up
to $3,000).
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Capital Losses
TIP 1
TIP 2
Retirement Plans
TIP 1
TIP 2
TIP 2:
Remember, though, that trusts are taxed at the highest marginal tax rate. In 2019, a trust’s income is taxed at the highest 37% marginal rate after earning just $12,751 of income.
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TIP 1:
Consider the power of trusts: Trusts can be used to control the disposition of your assets in a private way, protect assets from a beneficiary’s creditors, reduce estate and gift taxes, and distribute assets without the cost and delay of probate.
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Trusts
TIP 1
TIP 2
TIP 2:
In 2019, U.S. citizens and residents can make present interest gifts up to $15,000 per donee without using any of their lifetime exemption. The annual exclusion gift limit to
non-U.S. citizen spouses is $155,000 in 2019 (there
is no marital deduction
for gifts to non-U.S.
citizen spouses).
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TIP 1:
This year, the lifetime estate and gift exemption is at a record high - $11.4 million per person (or $22.8 million per married couple). Take advantage of the opportunity to shift your wealth to children and grandchildren before 2026, when the exemption is set to fall to $5 million per person.
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Estate & Gift Exemption
TIP 2:
Convert traditional IRAs into Roth IRAs to avoid income tax on the account’s earnings and future appreciation.
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TIP 1:
Don’t forget to make the most of your retirement plan contributions. The contribution limit to traditional IRAs is $6,000 ($7,000 if you are 50 or older) and contributions are due April 15, 2020.
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TIP 3
TIP 3:
You can reap an additional benefit by contributing the proceeds of these sales to charity. Cash contributions are subject to 60% adjusted gross income limitation, higher than the adjusted gross income limitation for non-cash gifts.
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TIP 3:
Consider outright gifts of dividend-paying stocks to children or grandchildren who can benefit from the 0% tax bracket on dividends.
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TIP 4:
It’s possible that the upcoming presidential election could impact the 2026 deadline for the estate and gift exemption to fall to $5 million—several candidates have said they would lower the exemption sooner. Now may be the best opportunity to take advantage of this exemption.
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TIP 3
TIP 4
TIP 3
TIP 3:
A trustee can shift taxable income from the trust to a beneficiary in a lower tax bracket by making a 65-day election and distributing the income to a beneficiary before March 5, 2020.
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Capital
Losses