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Unique Tax Savings Tips for Year-End & Beyond

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Now is a great time to start planning to maximize savings before the December 31st deadline and beyond.  The tax attorneys at Kelleher & Buckley, LLC have the knowledge, experience and solutions.  Please consider contacting us to address the following planning:

Gifting to Family, Friends and Charitable Organizations

  • Implement sales to a grantor trust, family limited liability company or private foundation to leverage wealth transfers without incurring gift or estate tax.
  • Gift appreciated assets, such as stock or real estate, to leverage charitable gifts and avoid capital gains taxation.
  • Use gift tax exemptions to attain asset and divorce protection and leverage estate, gift and generation-skipping transfer tax benefits for spouses and other loved ones.
  • Attain powerful income tax deferral savings for your children and other descendants by protecting the incredible Stretch-Out available to non-spousal inherited IRA and 401(k) beneficiaries.
  •  If you are wealthy with less wealthy, elderly and creditor-free parents, harvest their otherwise wasted death tax exemptions to provide you with capital gains savings.
  • Use inter-family loans to leverage wealth transfers without gift or estate taxes.
  • Gift up to $100k from a traditional Individual Retirement Account (IRA) to charity and avoid ordinary income tax (donor must be at least 70 1/2).
  • Fund a 529 plan for children or grandchildren for income tax-free growth and educational distributions. An individual can contribute $70,000 and a married couple can contribute $140,000 to a 529 plan without triggering gift tax issues. Some states (including Illinois) offer state income tax deductions for 529 contributions.

Year-End Income Tax Planning

  • Check your investment portfolio to harvest losses and offset gains, but watch out for those wash sale rules!
  • Check your mutual fund’s website for projected distributions in December. Given the strong stock market, distributions could be larger than anticipated.  Selling before the dividend date and moving to a similarly allocated but more tax-efficient vehicle may make sense.
  • Analyze 2017 vs. 2018 projected tax liabilities and accelerate or decelerate income and capital gains accordingly.
  • Pay estimated state and local taxes and property taxes, especially considering the tax plan in Congress is looking to eliminate or chip away at each of these deductions for 2018.
  • Review and adjust withholding and estimated tax payments to ensure that underpayment penalties will be avoided.

For more tax planning assistance and information, please contact Vasili Russis, Andrew Kelleher or David Buckley, at 847-382-9130.

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