*anyone 55 or older, do not forget about your catch-up contributions that increase the maximum you can contribute
|High Net Worth Individuals/Investors||Executives/Wage or Self-Employed||Retirees|
|Loss-harvesting to offset other capital gain realized during the year
Max deductible net capital loss remains $3,000 for year after offsetting against capital gain.
|Utilize health and dependent care Flexible Spending Accounts (FSAs) in 2020 / 2021
Be sure to use your funds for qualified expenses, saving pre-tax dollars. Review your upcoming elections based on changing needs
|Maintain adequate records for any COVID-related retirement distributions
These may not be subject to penalties.
|Be wary of wash sale rules
When repurchasing the same stock within 30 days of sale across all of your holdings, losses are limited.
|Maximize your deductible contributions towards your Health Savings Account (HSA)*.
Applies only if you have a qualified high-deductible health plan.
|Consider Roth conversions
If you are in a lower tax bracket today than you anticipate in the future, it may be time to convert.
|Review the rental vs. personal use of real estate holdings
Especially for vacant properties in the pandemic, to better utilize mortgage interest and real estate taxes.
|Revisit withholding elections
Ensure you are sufficiently withheld at the federal and state tax level, including other pre-tax elections for 401(k) plans and parking/transportation expenses in a COVID environment
|No Required Minimum Distribution (RMD) requirements this year
If you have waited thus far to take yours, it is not required this year.
|Be aware of the preferred long-term capital gain tax rates of 0%, 15% and 20%
At various levels of income, you can pay lower, preferred tax rates on certain income.
|Maximize your retirement plan contributions
Review the limits for your 401(k) or self-employed retirement plans for the year.
|For those turning 70 ½ in 2020, you now have until age 72 to take your first RMD|
|The 3.8% Net Investment Income Tax exists today
This is not new for certain high AGI taxpayers, but stay tuned for a Supreme Court ruling on the Affordable Care Act.
|Ensure certain self-employed retirement plans are established before year-end
Set aside the available funds to make the contributions later as future contributions are permitted before your 2020 returns filing date.
|Contribute and maximize your deductible and nondeductible contributions to IRAs*|
|Employees cannot deduct out-of-pocket expenses for their home office, but self-employed individuals can
Track your expenses and review the home-office deduction alternatives.
|Stretch IRA rules changed for non-spouse individual beneficiaries
Now you have a maximum of ten-year stretch, but it does not need to be equal over the ten years.
|Defer bonuses as applicable until early 2021|
Mortgage Interest –