As the year-end holiday season approaches, so does the time for tax planning. It is important to be prepared and minimize your tax obligation.  It helps to have some reliable advice and thorough planning to make the upcoming taxes a little easier. To ensure that this is the case, we’ve broken down some very useful year-end tax tips that you can put to good use.  Each tip can be successfully implemented to lower your taxes.

Contribute to Retirement

As each year passes you move closer and closer to the age of retirement. There is no better way to invest your money than a tax-deferred retirement account. This can grow because they are free of taxes, allowing you to build up good contributions and make your golden years that extra bit more special. Go with a 401(k) if you can and can find that your taxes soon become much easier to plan for and with thanks to this deferral.

Invest in Success

Want to make sure you have as little tax to pay as possible? Then invest in your long-term improvement as a business. Make a purchase on new equipment, or even new office supplies or vendor payments. This is very useful and it can get your deductions to be as effective as possible, effectively minimizing the amount of tax that you are likely to pay later.

Contribute to Charity

Want another good way to minimize the cost of your taxes? Then contribute to charity. So long as you fall under the right kind of threshold then you can use this to offset large tax portions. Just be sure to get receipts and documentation to ensure you can get the deduction!

Offset Gains by Selling Losing Stock

If you are reviewing your stock sales and notice you have a large gain start selling stocks that are realizing a loss.  By selling these stocks you recognize the loss on your tax return and offset those gains. Do not sell off too much because after you have offset your gains, you can only deduct $3,000 to offset ordinary income. Any amount over $3,000 will be used to offset future income.

If you live in San Diego County and are looking for a local CPA, contact Abbo Tax CPA.