A sharply divided Congress may be casting clouds of uncertainty over tax law changes, but that shouldn’t deter you from year-end planning.
Strategy: Make hay while the sun shines. In other words, take advantage of the tax-saving opportunities already available in the tax law, as we continue to hold out hopes for bluer skies ahead.
Appropriately enough, here are 14 year-end tax strategies that can benefit individual taxpayers in 2014.
1. Harvest capital gains or losses. Traditionally, investors look to realize capital losses from securities sales at year-end. The losses can offset capital gains plus up to $3,000 of ordinary income. Any excess loss is carried over to next year. But you might also take down capital gains that can be sheltered by prior capital losses. What’s more, net long-term gains are taxed at a maximum 15% federal rate for most folks (20% for those in the top ordinary income bracket), so plan your securities...(register to read more)