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Here Are Some Things You Might Consider Before Saying Goodbye to 2023

Here Are Some Things You Might Consider Before Saying Goodbye to 2023

December 01, 2023

What has changed for you in 2023? For some, this year has been as complicated as learning a new dance. Did you start a new job or leave a job behind? That’s one step. Some bigger changes, especially those in the family, are practically a pirouette. If notable changes occurred in your personal or professional life, you may want to review your finances before this year ends and 2024 begins. Proving that you have all the right moves in 2023 might put you in a better position to tango with 2024.

 

Even if your 2023 has been relatively uneventful, the end of the year is still a good time to get cracking and see what changes may need to be made.

 

Do you employ tax-loss harvesting strategies? This technique involves selling securities at a loss to offset capital gains taxes incurred from the sale of profitable assets. It's a common practice that we utilize for clients with taxable investment accounts that we manage. If you manage your own taxable investment accounts and are considering this strategy, we recommend seeking guidance from a professional who can provide tailored advice.1

 

In fact, you could even take it a step further. Consider that up to $3,000 of capital losses in excess of capital gains can be deducted from ordinary income, and any remaining capital losses above that amount can be carried forward to offset capital gains in upcoming years.1

 

Keep in mind this article is for informational purposes only and is not a replacement for real-life advice. Please consult your tax accountant before modifying your tax strategy.

 

Do you want to itemize deductions? You may just want to take the standard deduction for the 2023 tax year, which has risen to $13,850 for single filers and $27,700 for joint. If you think it might be better to itemize, now would be a good time to get the receipts and assorted paperwork together.2

 

Are you thinking of gifting? How about donating to a qualified charity or non-profit organization before 2023 ends? Your gift may qualify as a tax deduction. For some gifts, you may be required to itemize deductions.3  If you are even more charitably inclined, ask about donor-advised Funds.

 

While we’re on the topic of year-end moves, why not take a moment to review a portion of your estate strategy? Specifically, take a look at your beneficiary designations. If you haven’t reviewed them for some time, double-check that these assets are structured to go where you want them to, should you pass away. Lastly, look at your will to see that it remains valid and up-to-date.

 

Check on the amount you have withheld. If you discover that you have withheld too little on your W-4 form so far, you may need to adjust your withholding before the year ends.

 

What can you do before ringing in the New Year? New Year’s Eve may put you in a dancing mood, eager to say goodbye to the old year and welcome 2024. Please do it now rather than in February or March. Little year-end moves might help you improve your short-term and long-term financial situation.

 

Sources:

  1. Investopedia.com, May 2, 2023
  2. 2. IRS.gov, October 18, 2022
  3. IRS.gov, August 9, 2023

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that the strategies promoted will be successful.