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  • Writer's pictureNeil Boone

Take Control And Plan Ahead:​ Your 2023 Year-End ​Tax Planning Checklist

Updated: 4 days ago

As we are well past the halfway point of this year, it becomes increasingly important to set aside some time to develop your 2023 tax plan. ​For various reasons, many of the taxpayers who ​w​ould benefit ​t​he most from planning their taxes ​in advance, often wait until the following year​. By the time they start working on their taxes, they would find themselves​ with just a few weeks, or even just days, remaining until the filing deadline. ​Basis Tax Advisory LLC believes that proactive tax planning gives ​taxpayers back the control they need to manage their finances effectively. Proactive tax planning allows taxpayers to optimize ​t​heir tax liabilities​, seize planning opportunities, ​a​nd provides the structure to make better​, well-informed decisions.

Achieving a better tax season next year ​can be accomplished​. And it all starts now, by ​creating a plan, and taking action.

2023 Year-End Tax Planning Checklist

Income and Deductions

Review all sources of income for the year and estimate any additional income that might come in before year-end.

Evaluate the timing of bonuses, commissions, or freelance income to optimize your tax bracket.

Maximize deductions by considering prepaying mortgage interest, property taxes, or other deductible expenses.

Contribute the maximum amount to tax-advantaged retirement accounts, such as 401(k)s, IRAs, or SEP IRAs if you're self-employed.

Review your Health Savings Account (HSA) contributions and maximize them if eligible.


Review your investment portfolio and consider selling underperforming assets to offset capital gains.

Consider deferring capital gains by postponing the sale of appreciated assets until the next tax year.

Evaluate the timing of mutual fund investments to avoid purchasing funds just before they distribute capital gains.

Charitable Giving

Make charitable donations to qualified organizations to potentially lower your tax liability.

Consider donating appreciated securities to charities to avoid capital gains taxes.

Education Expenses:

Contribute to 529 plans or Education Savings Accounts (ESAs) to save for education expenses and potentially reduce state taxes.

Ensure you've utilized education-related tax credits, such as the American Opportunity Credit or Lifetime Learning Credit.

Medical Expenses

Consider scheduling medical procedures or purchasing medical supplies before year-end to maximize deductions for medical expenses.

Business Owners

Review your business financials and consider making purchases that qualify for business deductions before year-end.

Review the timing of invoicing and payments to optimize business income for tax purposes.

Consider deferring or accelerating business expenses based on your cash flow and tax strategy.

Healthcare and Insurance

Review your health insurance coverage and consider adjusting it if needed before the enrollment deadline.

Ensure you have Health Savings Account (HSA) or Flexible Spending Account (FSA) contributions aligned with your healthcare needs.

Estate Planning

Review and update your will, trusts, and beneficiary designations to reflect any changes in your family or financial situation.

Consider gifting strategies to reduce potential estate tax liabilities.

Tax-Loss Harvesting

Assess your investment portfolio for potential tax-loss harvesting opportunities to offset capital gains.

Be mindful of wash-sale rules when selling and repurchasing assets to ensure the tax benefits are not disallowed.

Required Minimum Distributions (RMDs)

If you're of RMD age, make sure you take the required minimum distribution from retirement accounts to avoid penalties.

Consult Professionals

As always, be sure to consult with a professional. Schedule a meeting with a tax advisor, financial planner, or accountant to review your overall financial situation and receive personalized recommendations.

Remember, this checklist is extensive, and not all items may apply to your individual situation. Prioritize the items that are relevant to your finances and consult professionals as needed to make informed decisions that align with your financial goals.



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