As a result of what we wrote last week regarding your “Last Chance for 2013 Tax Savings,” WFLA-TV, the Greater Tampa Bay NBC affiliate, visited our Beacon offices and interviewed Chief Investment Officer, Michael L. LaVoy, CFP®, ChFC.
The television interview aired several times on December 31, 2013, when LaVoy offered a number of year-end tax tips which, if you didn’t take advantage of them in 2013, they all should apply to the 2014 tax year as well.
The important thing to remember when pre-paying contributions, expenses, and setting up plans is that the funds must be available on or before December 31 of the tax year for which you are claiming deductions or credits. “If you write the check today, the money has to be available today—not next week,” said LaVoy. As well, all checks, mail, and electronic transactions must be time stamped before midnight or post marked on or before December 31.
Make your charitable contributions on or before December 31, and keep your receipts and cancelled checks
Pre-pay college tuition payments before December 31
Pre-pay your January mortgage payment so that you can claim an additional month of interest
Make the maximum contribution to your IRA: currently, $5500.00 per year
Set up a Solo 401(k) by December 31; you have until you file your return for the current tax year to fund it
In all cases, you will want to discuss your tax return, deductions, and credits with your CPA or tax preparer in order to stay apprised of the ever-changing IRS tax codes. Beacon has exclusive relationships with Certified Public Accountant, Robert Glasgow CPA, who can be reached at firstname.lastname@example.org.