Year End Tax Tips To Do Now

While Washington DC is buzzing about tax reform for 2018 and beyond, it is a good idea to review your situation for 2017 to see if you can minimize taxes this year. There is no reason why what is going on at Capitol Hill has to impact your tax bill.

Special Thanks to Porter Kinney CPA's in Tri Cities Washington for discussing some of these items with HFG Trust.

These all may not work in your situation, but here are a few ideas.


1) Make A Charitable Donation. If you are thinking about make a contribution, do it now. Congress is debating eliminating itemized deductions, so now is the time to help your favorite charity and be able to get the tax deduction.


2) Contribute To Your Retirement Account. At the very least you should be contributing an amount into your employer retirement account that they match. Typically that is 3% matching, so make sure you are contributing that much. Also if your employer does not have a plan, contribute to a traditional IRA.


3) Sell Your Losses. Review your stock holdings in your joint or individual investment account and sell stocks that have losses. You can off-set any capital gains and you may deduct up to $3,000 in losses against ordinary income.


4) Convert To A ROTH. If your income is lower this year and expected to be higher in the future, converting your Traditional IRA into a ROTH could be a good way to go.


5) Form A Company. If you had any business income and have not yet formed a company, it is not too late to do so. As a sole proprietor, you may be better from a tax stand-point as an S-Corp or LLC.

As with any suggestions I write about, make sure to speak with your financial advisor or tax consultant. Not all of these tips will apply to you. If you do not have an advisor, contact me at HFG Trust.

HFG Trust is a State of Washington chartered Trust company with over $500 million in assets under management. We at HFG Trust will continue to provide wealth and portfolio management; and for those clients who require trust services, we can satisfy that need as well. Please contact us if you would like more information or want to consider establishing a trust for your estate planning needs.


■ T. Michael Tallman, CFP® CTFA


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