By: Corry Hunter, CPA
With just a few days remaining in 2013 now is the final push for tax planning. Here are some last minute strategies:
- Prepay your property tax that is due in April of 2014 and you are able to deduct more for 2013 if paid by December 31. This strategy is most useful for when your total itemized deductions are just below the standard deduction. Prepaying can put you over the standard deduction and give you a lower tax every other year if planned correctly.
- The sales tax paid on autos, RVs, and boats can be added to your general sales tax deduction. It may be worth it buy the larger ticket items now rather than miss out when this incentive is gone in 2014.
- Prepay state income tax. The final estimate for your 2013 tax is due in January 2014. If this amount is paid prior to December 31st it can be deducted on the 2013 return.
- IRA contributions can be made as late as April 15th 2014 and still count for 2013. SEP IRAs can be deposited as late as the final extension date of the tax return.
- HSA contributions can be made as late as April 15th as well.
- Prepare a 2013 tax projection before the end of the year. The projection may identify other tax savings opportunities that are available to you.
As always, contact Osborne Rincon with any questions or further discussion.
Corry Hunter is a Certified Public Accountant with Osborne Rincon, CPAs in La Quinta. He can be reached at (760) 777-9805 or firstname.lastname@example.org.