As we approach the end of 2023, the stress of the holidays can be overwhelming, not to mention the looming tax season. While chatting with your accountant is always a good idea, taking control of your year-end planning can be empowering. Whether you’re an individual or a business owner, here are some tips to maximize deductions and make the most of your 2023 tax return.”
Individuals:
If you itemized deductions in the prior years, there are many ways to maximize your deductions this year. One way is to make charitable contributions. The holidays are the season of giving. Make sure you keep contemporaneous records and receipts of the donations.
If you are an investor, you can harvest your losses. This is the practice of selling off investments at a loss which can be used to offset any short-term or long-term capital gains. Any excess of losses may be carried forward to future years. Be careful, wash sales can come into play if you buy back that same investment within 31 days which may disallow the loss.
Do you have an IRA? If so, make sure you maximize your contributions this year. You can even wait until April of 2024 to contribute and claim the contributions on your 2023 taxes. You can also start an IRA and begin contributing today. There are many rules regarding IRA deductibility. Please contact us if you have any questions or concerns.
Thinking of making some home improvements? Some upgrades can qualify as a credit on your 2023 taxes. Some examples are a new roof, furnace, and air conditioning units as well as many other improvements.
Businesses:
If you need to purchase a new vehicle used for business or a new piece of equipment Need Bonus depreciation and other depreciation laws allow business owners to deduct 80 or 100 percent of vehicles and other new equipment purchases that qualify. This can allow a business a major deduction on their 2023 tax return. Please contact us immediately to discuss the tax ramifications.
Are you doing business in multiple states? Please contact us immediately to discuss any potential tax-saving ideas. All states are reviewing businesses to make sure they are complying with the correct tax filing. We can assist your business with setting up state tax compliance .
Does your business have a retirement plan for you and your employees? Creating a qualified retirement plan is fully deductible on your business tax return. It also helps attract qualified new employees.
Our team of professionals at Michael Coglianese CPA, P.C. has extensive knowledge and experience in all these subjects and across a wide range of industries. We can use our knowledge to fully plan for your 2023 taxes and future years.