2018 Action Checklist

As we head towards the end of the year, be sure to complete this checklist to be on track for tax season.

• Have your tax return preparer do projections
• Fund your Health Savings Account, if eligible, to the max (these accounts are analogous to Roth IRAs, but on steroids—you get a year of contribution deduction, no tax on investment gains and income on the account and distributions from the account are tax free); payment can be made until April 15, 2019
• Max out 401(k) contribution; must elect before December 31, 2018
• Harvest long term capital losses (capital losses offset capital gains and excess of long term capital losses over long term capital gains is deductible up to $3,000/year with any residual carried forward to succeeding years)
• Deduct real estate taxes before income taxes to avoid tax benefit rule income in 2019
• Make 2 years of charitable contribution deductions if you will itemize and this would increase your QBI deduction
• If you are getting a divorce and will pay alimony, have the procedure concluded by December 31, 2018 so the alimony deduction will be grandfathered