Last Minute Tax Tips

As we move into the final days of 2014, it’s not too late to take actions that can reduce your tax bill.

As usual, all else being equal, it’s a good idea to defer income and accelerate deductions. Waiting until 2015 to realize capital gains can make sense, as can bunching deductions like charitable donations or medical expenses into one year, especially if it’s a year when your income is higher.

Making charitable donations of long-term gain property, instead of cash, is a good strategy as well.

Taxpayers subject to capital gains taxes or the 3.8% Medicare tax on net income, or both, can benefit from selling off assets to realize a capital loss, offsetting other gains and offsetting other income of up to $3,000.

Start thinking about these strategies right now, because once the clock passes midnight Dec. 31, it will be too late.