LICENSE #0680951
Protect your goodies. Insurance & Risk Management Services for: Farm & Business • Home & Auto • Life & Health
www.Dahlmeier.com Chico
Oroville
Willows
1368 Longfellow Ave
2080 Myers St
530.342.6421
530.533.3424
305 N. Culver Ave. (Lambert Insurance Agency)
530.934.3361
7 Year-End Options to Reduce Your Tax Bill
BY RENEE MICHEL, MBA, AND JOE SWEENEY, CFP ®, FINANCIAL ADVISORS AT SWEENEY & MICHEL, LLC
As the year ends, it’s important to be mindful of ways to minimize your tax burden. Just like the holidays come and go, so do tax planning opportunities. Below are common ways to potentially reduce your income taxes due for 2021: 1. Donating Assets. You can deduct up to 50% of your income for charitable donations made in cash, and 30% of stock or property. Giving appreciated assets has an extra benefit, as you can deduct the full value of the asset while avoiding generating capital gains. 2. Selling assets which have dropped in value (also called tax-loss harvesting) can be a valuable way to offset capital gains elsewhere. If your losses > gains, you can deduct up to $3,000 against income. 3. Deferring income to next year might make sense in certain situations. 4. Prepaying 2022 expenses and picking up the deduction this year can be helpful. 5. Another way to defer income is to use a tax-sheltered company retirement plan or IRA. Company provided plans like 401(k)’s will allow you to defer income by contributing by December 31st. IRAs allow you to make contributions for a tax year until your tax deadline. 6. Owners of IRA’s who are over 72 years old are subject to RMD’s. However, they can direct their distribution directly to a qualified charity and avoid the income tax or 1099 altogether, allowing them to still take a standard deduction. 7. Health Savings Accounts (HSA’s) allow pre-tax contributions which can be withdrawn tax-free for out-of-pocket health expenses. Renée Michel, MBA and Joe Sweeney, CFP® | 196 Cohasset Road, Suite 100, Chico CA 95926 (530) 487-1777 | renee@sweeneymichel.com | joe@sweeneymichel.com | www.sweeneymichel.com This is not tax advice. | Sweeney & Michel, LLC is a Registered Investment Adviser. This brochure is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Sweeney & Michel, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Sweeney & Michel, LLC unless a client service agreement is in place.
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