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Year-End Tax Tips: Key Deadlines and Strategies to Maximize Your Savings

Dec 18, 2024

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Hi.  Here are some more tips .   In no particular order of importance, here goes......


FSA.......Check your health flexible spending account. You must clean it out by Dec. 31 if your employer hasn’t adopted the 2½-month grace period or the $640 carryover rule. If you don’t use it, you’ll end up forfeiting any leftover funds in your account.



EQUIPMENT/FURNITURE  PURCHASES........Any large 1-time purchases bought before 12/31 are eligible for a large upfront 60% deduction this year.  (The remaining 40% is deducted over several years going forward).  If you were planning to buy early next year, consider moving it up to this year to get the extra deduction.


WASH SALE RULES........... Crypto sales are not subject to wash sale rules, so feel free to sell off a loss position, claim a deduction this year, and buy it back right away.  Wash Sale rules mean that if an investor sells a stock at a loss and buys it back within 30 days, the loss can't be deducted against other stock sold at a gain.  But wash sale rules do not apply to crypto at this time!  So take advantage of that loophole while you can, if selling the crypto position fits with your overall financial goals.


TRADITIONAL IRA /  ROTH IRA/  SEP-IRA  FUNDING........... Deadline to fund for 2024 is April 15, 2025.  So no need to rush to fund before 12/31


HSA FUNDING...........Same:  funding for 2024 is April 15, 2025.


401k............Contribute the maximum allowed!  If you have not hit the annual limit, consider making a 1-time contribution on your next payroll.  Make sure the payday will be in 2024 to get the deduction this year.



I hope this helps.........If you have questions, please let me know.

Dec 18, 2024