Friday Deadline for Tax-Loss Harvesting and Other Year-End Money Moves
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Friday, December 29th is the deadline for tax-loss harvesting - sell stocks with gains to offset losses and minimize tax liability.
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If you are in a low tax bracket this year, consider selling profitable investments, exercising stock options, or converting IRA to Roth IRA to pay taxes now while bracket is low.
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If in a high bracket, push out income/bonuses to 2024, maximize deductions by itemizing, or business owners should purchase 2024 expenses now to deduct this year.
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For those in higher brackets, consider municipal bonds - interest earned can be federal and state tax-free.
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If you took big losses in 2022 (e.g. short sellers), keep them in mind to use to offset future gains in coming years.