Money Moves Before the New Year

We know you don’t want to deal with taxes this time of year, but hear us out: Unique tax-saving opportunities are only available before the year’s end. Think of it as the holiday gift that keeps on giving.

There’s rarely a year in which a few tweaks to your deductions, expenses, contributions, or withholdings aren’t warranted. Look for increasing standard deduction, marginal tax, and capital gains thresholds. Annual inflation adjustments usually bring higher contribution limits to Health Savings Accounts (HSAs), IRAs, and other retirement savings. These inflation adjustments could cause a sudden difference in your expected tax rate.

There may also be new tax laws that create unique opportunities and obligations. The Secure 2.0 Act passed in 2022 includes quite a few. If you haven’t discussed with your tax and financial advisors how Secure 2.0 affects your retirement savings, in particular, do so now. Provisions that increase catch-up contribution limits and mandatory distribution cash-out requirements are already in effect. Required minimum distribution (RMD) will transform over several years. The age required for RMD has increased to 73, and the 50% penalty for failing to take RMD has decreased to 25%. A handful of additional provisions affect 529s, emergency expenses, and employer-sponsored retirement plans. Principal Financial offers a guide here, but again, it’s best to discuss directly with your advisors.

Your own life changes may also affect your tax obligations from year to year, including buying or selling a home or property (or even improving or suffering losses on those properties), business income or ownership changes, or changes in your income, reaching a milestone birthday, or family changes (deaths, births, illnesses, or minors reaching adulthood or going off to college).

Also consider:

  • Whether you should sell If you lost money on certain stocks this year, selling off corresponding long- or short-term shares that performed well could offset your capital losses. Conversely, if you experienced gains, you might want to consider selling losses to offset those gains. You can’t replace the sold stock outright, but with the proper guidance, you can replace it with similar investments.
  • How you might give money to loved ones. For 2023, individuals can give up to $17,000 to other individuals tax-free (married couples can gift $34,000). These limits include cash, of course, but also property such as land, a car, collectibles, or stock. Giving to others annually in this way can help you avoid future gift taxes or estate taxes on a larger lump sum later on. Remember that tuition and medical expenses for close relatives are not considered gifts and may be eligible for a full deduction.
  • Your charitable giving strategy. Giving money or other assets to charity is a great way to reduce your tax bill. Charitable giving is an especially great option if you’re 73 or older because you can donate up to $100,000 from your IRA as part of your Required Minimum Distribution (that total will be indexed for inflation beginning in 2024). Adhere to IRS guidelines for charitable giving for your contributions to be considered tax-deductible. You may want to ask about Donor Advised Funds (DAFs) for setting aside donations that can be distributed over time.
  • Deductible business purchases. Business owners have additional considerations to make, including those pertaining to Section 179 deductions and depreciation allowances. Deferring income, funding retirement, recharacterizing IRA contributions, and carrying back or carrying forward business losses could also be opportunities on the table. Some of these additional moves can be made later, but don’t wait to find out which ones.

Between carving the turkey and trimming the tree, “carve” out a little time to investigate whether a little “trimming” of your tax bill can happen, too. You’ll be glad you did. Feel free to contact us with questions.

Client Spotlight

A terrifying home invasion involving men with masks and guns set Pam Wood on an unexpected path to business ownership in 1981….
What happens when you combine a passion for creating, a knack for business, and deep family values? For Scott Klingler, owner of MergeWorks, it resulted…
Bessie M. Irizarry loves embracing a good challenge. It’s one of the many reasons she’s earned respect as a female engineer and business owner in…
San Antonio native Mark Lopez can’t recall a time he didn’t envision himself following the footsteps of his father, a project manager, into the construction…
Siew Pang knows that the key to unlocking the American dream can be discovered by embracing unexpected opportunities….
If you’re a San Antonian, you may not want to imagine your weekend without brunch at the city’s beloved Magnolia Pancake Haus….
Greg Thompson has long respected money and how it can catalyze greater things….
You may not be aware of it, but Don Lasseter has helped you throw a party. How do we know that? He’s the franchise owner…
Land surveyors aren’t known for exceptional customer service. But why shouldn’t they be? David Breaux set out in 1998 to prove that treating customers right…
When Lance Rose sees a business need, he fills it. That’s how he and Terri, his wife of 30 years, have evolved into the proud…
Matt and Lara Bruhn met while in graduate school at Harvard. He served as an officer and F-15C pilot with the U.S. Air Force….
Growing up in Piedras Negras, Coahuila, Mexico—just south of Texas along the Rio Grande—Oscar E. Flores dreamed of becoming a designer….

Blogs and Articles

Bankler Partners, LC, Expands into a New Name and Space

This is a pivotal moment for our firm. The transformation to Bankler Partners and move to our new, modern space represents our dynamic growth and...

Bankler Partners, LC, Expands into a New Name and Space

Read More

Digital Assets and Your Taxes

You may have reveled in the Wild West days of cryptocurrency and other digital assets, but we’re entering an era of meticulous record keeping and...

Digital Assets and Your Taxes

Read More

The Goldilocks Rule for Tax Withholding

If you’re like half of Americans this year, you are more dependent on your tax refund to pay for necessities than you have been in...

The Goldilocks Rule for Tax Withholding

Read More

How Inherited Assets Affect Your Taxes

Inheriting assets can be a financial blessing, but it also raises essential tax questions that many heirs overlook. How you manage those assets can have...

How Inherited Assets Affect Your Taxes

Read More

Getting Hit by Someone Else’s Bankruptcy

Finding out that another business or individual who owes your business money has declared bankruptcy can feel like a kick to the stomach....

Getting Hit by Someone Else’s Bankruptcy

Read More

Welcome to Texas: Cutting Tax Ties with Your Previous State

San Antonio is currently one of the fastest-growing metro areas in the nation. If you’re among our new residents, welcome! Before you enjoy the tax-friendly...

Welcome to Texas: Cutting Tax Ties with Your Previous State

Read More

Reaching the Unreachable IRS

Reaching the IRS has always been challenging. With the IRS workforce reduction continuing, many believe your odds of reaching a warm body to resolve a...

Reaching the Unreachable IRS

Read More

How Is Costco Gold Taxed?

Gold, silver, and other precious metals have emerged as standout assets in today’s unpredictable economy due to their ability to remain somewhat independent from stock...

How Is Costco Gold Taxed?

Read More

Yes, You Do Still Have to File Taxes

Early filing numbers are measurably down this year, data security concerns are high, and IRS staffing is in disarray. But if you’re considering scrapping it...

Yes, You Do Still Have to File Taxes

Read More

Retirement Plan Perks for Texas Small Businesses

Retirement Plan Perks for Texas Small Businesses

Read More

Top 6 Worst Social Media Tax Tips

Top 6 Worst Social Media Tax Tips

Read More

What’s Happening with the Corporate Transparency Act?

In March 2025, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule removing the requirement for U.S. companies to report beneficial ownership information...

What’s Happening with the Corporate Transparency Act?

Read More

Love & Marriage & Your Business Assets

Love & Marriage & Your Business Assets

Read More

How Small Business Owners Reduce Taxable Income

How Small Business Owners Reduce Taxable Income

Read More

Spot These Tax Scam Signs Before It’s Too Late

Spot These Tax Scam Signs Before It’s Too Late

Read More

Now Accepting New Clients

Let’s Start the Conversation

Let’s take a look at your finances together. We offer a complimentary 1-hour call to review your past tax returns. If we see a way to help you, we will.