Stock that was sold for a profit can result in capital gains tax. Look over your portfolio and check if you own stock that has lost value…..you can offset the capital gain with a capital loss.
If you own a small business and are having a prosperous year, consider purchasing a new business vehicle, equipment, or other capital expenditure. Check with your accountant to make certain of deductibility.
Before converting from a traditional IRA to Roth, look over your year-to-date income to see how much you can convert and still remain in the same tax bracket. This must be done by Dec. 31st.
If you are considering making a contribution to a traditional IRA or Roth, you have until you file your taxes in 2022 to make that contribution. Be sure to indicate the year you want it to be credited.
If you are over 72 you will have to withdraw your required minimum distribution from your IRA. If you have more than one IRA, it doesn’t matter where the total comes from, as long as it meets the required percentage. Failure to withdraw your RMD triggers a 50% penalty.