Mid-Year September Tax Planning Checklist

We’ve just finished putting together our annual mid-year tax planning checklist for Nissen and Associate clients. All too often, taxpayers wait until December to think about their taxes. But when you wait that long, you’re bound to miss opportunities that could reduce your tax liability. Worse, you miss out on options that you can financially benefit from. September is the perfect time for tax planning.

The following are some life events that can affect your tax return. Now is the perfect time to take steps to mitigate any potential impact and avoid unpleasant surprises.

Below are some events that can trigger tax consequences.

2022 Tax Planning Checklist: Did you (or are you going to):

• Get Married, Divorced, or Become Widowed?
• Change Jobs or Has Your Spouse Started Working?
• Have a Substantial Increase or Decrease in Income?
• Have a Substantial Gain from the Sale of Stocks or Bonds?
• Buy or Sell a Rental?
• Start, Acquire, or Sell a Business?
• Buy or Sell a Home?
• Retire This Year?
• Reach Age 72 This Year?
• Refinance Your Home or Take Out a Second Home Mortgage This Year?
• Receive a Substantial Inheritance This Year?
• Take Advantage of Tax-Beneficial Retirement Savings?
• Make Any Significant Equipment Purchases for Your Business?
• Purchase a New Business Vehicle and Trade-in or Dispose of the Old One?
• Adequately Document Your Cash and Non-Cash Charitable Contributions?
• Keep Up With Your Estimated Tax Payments?
• Make Any Unplanned Withdrawals from an IRA or Pension Plan?
• Add a Solar Electric System to Your Home or Purchase an Electric Vehicle?
• Hire Veterans’ or Other Individuals in Your Business Who May Qualify for the Work Opportunity Tax Credit?
• Trade or Sell Cryptocurrency?
• Incur Expenses Adopting a Child?
• Start Receiving Social Security Benefits?
• Exercise an Employee Stock Option?
• Start Using a Part of Your Home for Business This Year?
• Exchange Real Properties Used in Your Trade or Business or Held for Investment?
• Start a Retirement Plan in Your Self-Employment Business?
• Make Gifts of Over $16,000 to Any One Individual This Year?

Of course, these are not the only issues that have tax consequences, but they are the most common.

If you anticipate or have already encountered any of the above events or conditions, consider consulting with this office. While it’s preferable to check in with us before the event, definitely give us a call before the end of the year so we can discuss your options.