Well it’s hard to believe there are this many tax strategies, but lucky for us it’s true. This week we bring you another tax strategy that may save you extra dollars, or at least potentially delay payment of some tax dollars.
Last week in our end of the year tax strategies, we spoke Optimizing Donations, the week prior of IRA Distribution, and the week prior to that a Roth Conversion to maximize your tax deductions. This weeks topic is simple, but often overlooked or forgotten.
Pushing income to next year now, gives you 16 months to settle up!
Consider pushing income out to 1-1-16
This weeks strategy is another push, or at least push out thought, on your income.
Push that income out!
If you can hold off on realizing income over the next 35 to 40 days, your ultimate deferral of taxes, maybe 15 to 16 months.
Here’s what we’re talking about if you deferred income until January 1 of next year, your settle up for that taxable income put in theory, would be April 2017.
- Elective IRA or RMD distributions
- Consulting payment
- Taxable gains
These are just a few examples!
In closing, certainly keep an eye on pushing too much income to next year, however if your income appears to be relatively even this year it may make sense for you to look to pushing some of your year-end income into next year.
Have a Great — Less Taxable — Day!
John A. Kvale CFA, CFP
8222 Douglas Ave # 590
Dallas, TX 75225