Tax Planning for Individuals 2014 - Part 1

Jeff Robinson

November 17, 2014

As we approach the end of 2014, there are a number of tax planning opportunities individual taxpayers should consider. In addition, there may be year-end action by Congress to renew dozens of personal and business tax provisions for 2014, most of which expired at the end of the 2013 tax year. These possible “tax extenders” include the deduction for mortgage insurance premiums, tax-free distributions from IRA’s to charitable organizations, and certain above-the-line deductions relating to teacher expenses and qualified tuition expenses.

Some of the actions individual taxpayers should consider include:

Capital Gains

Review unrealized capital gains and losses in your investment portfolio, and consider discussing with your investment advisor strategies for realizing tax losses and rebalancing to adjust asset classes and maximize tax-efficiency.

Adjust your withholding or estimated tax payments to account for any income not previously considered, such as capital gains.

Charitable Deductions

Review the charitable contributions you have made to date during 2014 to determine if you should make any larger contributions in 2014 or 2015 for greater benefit. Only contributions to qualifying charitable organizations are deductible.

Summarize unreimbursed out-of-pocket expenses incurred in providing volunteer services since these may be deductible. Keeping accurate records is important to substantiate these deductions.

Consider contributing to a charity appreciated capital gain property held more than a year rather than cash since it is more tax advantageous. You will receive a deduction for the fair market value of the assets contributed, and will avoid paying any tax (including the net investment income tax) on the capital gain.

Please contact us at 804.270.6980 if you have any qeustions or would like to discuss tax planning opportunities.

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