Year End Tips to Make Tax Season a Breeze

It’s that time of the year once again where the only thing consuming our minds are the holidays. Millions of Americans are so consumed with gifts, parties, and travel accommodations that they are most likely not even thinking about taxes, especially because most believe April is the time to act. We are here to tell you that being prepared at the end of the year for tax season will be of much help to you. We’ve got some excellent holiday season tips that will help you make it through next year’s tax season without breaking a sweat.

Take Required Minimum Distributions (RMD’s)

The IRS requires that you withdraw a minimum amount from your retirement plans each year once you reach the age of 70 ½ and pay income taxes on them. RMD’s are calculated automatically here at Fogel Capital Management and at most other companies that hold your accounts. Failure to take these withdrawals may subject you to penalties, so make sure you take them on time.

Figure out your estimated income

Start talking to your tax professional now. With the help of your tax professional, you will be able to determine how much income you have generated this year. There are also resources from big online tax software companies like TurboTax and H&R Block you can use to calculate an estimate of your tax return. The next tip will address steps you can take to reduce some of the possible tax burdens. Keep in mind that we are not accountants, and this article is not complete tax advice, so please talk to a tax professional before following the information in this article.

Sell Your Losses

When you have a large tax bill, it is beneficial to have a cushion. Selling investments for a capital loss can create this cushion. Whenever people have a large loss on an investment, many tend to actually hold onto that loss in hopes of recovering it, instead of accepting that it was a bad investment and selling it. If you kick that fallacy and sell your losses, then they can be deducted up to $3,000 per year. Losses over this $3,000 threshold are able to be carried forward.

At Fogel Capital Management, we’re able to work alongside your chosen tax professional to help ensure you’re optimizing your future and your taxes. We also can help with the investment portion of tax planning, so consult us if your tax professional needs information about your investments. Fogel Capital Management clients can always contact us or go online to get their realized capital gains or losses for the year. We will sell the right investments for you if you want to offset some of your tax bills. For a free portfolio analysis, please give us a call at (772) 223-9686 or fill out the contact form online at

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply