The year is quickly drawing to a close, but there is still time to take steps to reduce your 2015 tax liability — you just must act by December 31:
- Pay your 2015 property tax bill that is due in early 2016
- Make your January 1 mortgage payment
- Incur deductible medical expenses (if your deductible medical expenses for the year already exceed the applicable floor)
- Pay tuition for academic periods that will begin in January, February, or March of 2016 (if it will make you eligible for a tax credit)
- Donate to your favorite charities
- Sell investments at a loss to offset capital gains you have recognized this year
- Ask your employer if your bonus can be deferred until January
Keep in mind, however, that in certain situations these strategies might not make sense. For example, if you will be subject to the alternative minimum tax this year or be in a higher tax bracket next year, taking some of these steps could have undesirable results.
If you are unsure whether these steps are right for you, consult us before taking action.