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    December 19, 2024
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Tax-Saving Moves You Can Make Before Year-End! As we approach the end of 2024, now is an excellent time to review your financial situation. While April 15th is still four months away, there are numerous tax-planning strategies to consider before then to help manage your 2024 tax bill. Some tasks must be completed-or in certain cases, cannot be delayed-before the end of the year to take advantage of important tax-saving opportunities. It has been a stellar year in the market, with the S&P 500 Index up 29.24%. This opens the door to several strategies to reduce personal taxes. Here are the top strategies to consider before December 31st: 1. Prepay Federal, State, Local, and Property Taxes Rather than paying 4th quarter estimated income taxes in January 2025, consider paying all taxes in the 2024 calendar year. This approach may allow you to claim a larger tax deduction. 2. Mortgage Interest Deduction Up to $10,000 in mortgage interest can be deducted annually from your income tax per home. 3. Medical Expenses Deduction Medical expenses can be deductible if they exceed 7.5% of your adjusted gross income (AGI). Since this is a high threshold, this strategy is most beneficial in years when you face significant health issues or large medical expenses, such as those resulting from injuries, major surgeries, or serious illnesses. 4. Expenses Related to the Sale or Purchase of a Home Deductible expenses may include appraisals, inspections, attorney fees, title searches, and other closing fees. 5. Capital Gains and Losses Aim to offset all investment gains by the end of the year. Investments held for more than one year qualify as long-term capital gains, taxed at 15%, while short-term gains (held for less than a year) are taxed at your regular income tax rate. Review your taxable portfolio and balance gains and losses by selling appropriate investments before 12/31/2024. 6. Charitable Contributions Optimize charitable donations by "bunching" gifts into a single calendar year to increase the deduction amount. Cash gifts allow you to deduct up to 60% of AGI, while donations of low-cost stock qualify for a deduction of up to 30% of AGI. 7. Maximize Retirement Account Contributions o Individual Retirement Account (IRA): You can contribute up to $7,000, or $8,000 if you are over 50, in 2024. o 401(k) or 403(b): Employees can contribute up to $23,000 annually, or $30,500 if over 50. 8. Consider a Roth IRA Conversion Converting a Traditional IRA to a Roth IRA may provide long-term tax advantages. No matter your level of wealth, many year-end tax reduction opportunities exist. We recommend working with a wealth advisor to determine which strategies align best with your financial situation and goals. We are available to assist at any time. Happy Holidays from our team at Schenley Capital! adno=358761 Beth Genter Ellie Genter Schenley Capital Inc. 417 Walnut Street, Suite 200 Sewickley, PA 15143 (412)-749-9256 schenley capital f in Schenley Capital, Inc. does not provide legal, accounting or tax advice. Any statement regarding such matters is explanatory and may not be relied upon as definitive advice. All investors are advised to consult with their legal, accounting and tax advisers regarding any potential investment. adno=324108 Tax - Saving Moves You Can Make Before Year - End ! As we approach the end of 2024 , now is an excellent time to review your financial situation . While April 15th is still four months away , there are numerous tax - planning strategies to consider before then to help manage your 2024 tax bill . Some tasks must be completed - or in certain cases , cannot be delayed - before the end of the year to take advantage of important tax - saving opportunities . It has been a stellar year in the market , with the S & P 500 Index up 29.24 % . This opens the door to several strategies to reduce personal taxes . Here are the top strategies to consider before December 31st : 1. Prepay Federal , State , Local , and Property Taxes Rather than paying 4th quarter estimated income taxes in January 2025 , consider paying all taxes in the 2024 calendar year . This approach may allow you to claim a larger tax deduction . 2. Mortgage Interest Deduction Up to $ 10,000 in mortgage interest can be deducted annually from your income tax per home . 3. Medical Expenses Deduction Medical expenses can be deductible if they exceed 7.5 % of your adjusted gross income ( AGI ) . Since this is a high threshold , this strategy is most beneficial in years when you face significant health issues or large medical expenses , such as those resulting from injuries , major surgeries , or serious illnesses . 4. Expenses Related to the Sale or Purchase of a Home Deductible expenses may include appraisals , inspections , attorney fees , title searches , and other closing fees . 5. Capital Gains and Losses Aim to offset all investment gains by the end of the year . Investments held for more than one year qualify as long - term capital gains , taxed at 15 % , while short - term gains ( held for less than a year ) are taxed at your regular income tax rate . Review your taxable portfolio and balance gains and losses by selling appropriate investments before 12/31/2024 . 6. Charitable Contributions Optimize charitable donations by " bunching " gifts into a single calendar year to increase the deduction amount . Cash gifts allow you to deduct up to 60 % of AGI , while donations of low - cost stock qualify for a deduction of up to 30 % of AGI . 7. Maximize Retirement Account Contributions o Individual Retirement Account ( IRA ) : You can contribute up to $ 7,000 , or $ 8,000 if you are over 50 , in 2024 . o 401 ( k ) or 403 ( b ) : Employees can contribute up to $ 23,000 annually , or $ 30,500 if over 50 . 8. Consider a Roth IRA Conversion Converting a Traditional IRA to a Roth IRA may provide long - term tax advantages . No matter your level of wealth , many year - end tax reduction opportunities exist . We recommend working with a wealth advisor to determine which strategies align best with your financial situation and goals . We are available to assist at any time . Happy Holidays from our team at Schenley Capital ! adno = 358761 Beth Genter Ellie Genter Schenley Capital Inc. 417 Walnut Street , Suite 200 Sewickley , PA 15143 ( 412 ) -749-9256 schenley capital f in Schenley Capital , Inc. does not provide legal , accounting or tax advice . Any statement regarding such matters is explanatory and may not be relied upon as definitive advice . All investors are advised to consult with their legal , accounting and tax advisers regarding any potential investment . adno = 324108