Strategies To Consider for Year-End Tax Planning

It's no secret, COVID-19 has created a huge emotional and physical toll on most of us, all over the world. When it comes to the financial aspect, COVID-19 has hit hard on finances throughout the year considering there have been problems with the economy, unpredictable market swings, and many other financial difficulties that have occurred.

You may be interested in finding out what strategies to consider before the year-end tax planning which is part of estate planning in Miami and what to keep in mind so you're fully prepared in case of emergencies where something unannounced happens again due to the pandemic.

You can never be too prepared when it comes to strange and challenging times. So, it will be helpful to take note that year-end tax planning goes hand in hand with trusts, planning, drafting, and an administration that you can find in Miami. While estate planning, you might want to discuss creating a living trust along with anything else related to estate planning with a legal professional such as an attorney.

It’s important to take into consideration what your options are and what needs to be done in order to be as ready as possible when the year-end tax planning is here. If you have any questions or concerns make sure to either get in contact with an estate litigation lawyer in Miami or even an estate planning agency in Miami just so you have options and can understand what to do.

But, before you dive into the helpful strategies when it comes to your estate planning and your year-end tax plan in Miami, you’ll want to make sure you understand the full concept of this type of planning because it will be beneficial for not only you but anyone else that may be confused on the subject.

With that being said, year-end tax planning is considered to be determined by processing the finances so you can identify the best annual tax benefits. Certain things that are often done within the year and tax planning to make sure it's all done in a timely manner is by timing sales or changes. Getting help from trusts, planning, drafting, and administration firms in Miami would be something to think about if you are confused or need assistance for the year-end tax planning.

This step will help make the process go smoothly and be able to be done in a way that isn't filled with obstacles and challenges. However, due to COVID-19, it would be very surprising if there weren't any challenges that came your way while trying to proceed with year-end tax planning. So, it wouldn’t be a bad idea to do extra research regarding an estate litigation lawyer that can be found in Miami if you are feeling stressed out over the entire process of tax planning.

Try To Take Some Extra Tax Deductions Before Tax Planning

You may be interested in trying to get a deduction and lower your tax bill and one way you can do that is by increasing your deductions this year and firms that specialize in trusts, planning, drafts, and administration in Miami can help with this. This also might be helpful for people that are wanting to defer income into next year so this is something to take into consideration if this is something you would find yourself participating in.

If you need assistance when it comes to taking some extra tax deductions before tax planning then talking to a living trust attorney in Miami can shed some light on the topic and what you need in order to save money and begin this process.

According to TurboTax, “For example, contributing to charity is a great way to get a deduction. And you control the timing. You can supercharge the tax benefits of your generosity by donating appreciated stock or property rather than cash. Better yet, as long as you've owned the asset for more than one year, you get a double tax benefit from the donation: You can deduct the property’s market value on the date of the gift and you avoid paying capital gains tax on the built-up appreciation.”

Donating to charity and being part of the charity community is a great way for you to get a deduction like stated above from TurboTax. Just keep in mind that once you start contributing to a charity you may never want to stop because of how amazing the feeling is after you were able to help out the best you could and use your fortunes for good.

Stay Away From Mutual Funds

Another strategy to consider for year-end tax planning is to try your best to stay away from Purchasing any mutual funds to the best of your ability. This is mainly because most mutual funds are actually considered to be very tax-inefficient and sadly a lot of people don't know this which ends up creating more difficulty than there needs to be and you don't want, right?

You may want to think about contacting a living trust attorney located in Miami instead because they would be able to help you skip probate costs and answer any questions you may have about what to invest in rather than mutual funds.

According to Level Up Financial Planning, “Many people do not realize how tax-inefficient many mutual funds can be. Avoid making the mistake of purchasing a mutual fund that may be forcing a significant dividend or capital gain distribution.”

From the statement above, if you end up making this mistake of purchasing a mutual fund a can result in situations that could be avoided if you just ignore mutual funds and try to stay away as much as possible. There's no need for more difficulties in life right now due to how stressful and challenging it has been already.

If you do find yourself in a situation or in a dispute after purchasing a mutual fund then keep in mind that an estate litigation lawyer in Miami would become your best friend. This is due to the fact that they’ll be able to represent you considering this situation would be involving a litigated dispute over any type of estate or trust assets.

It’s a Good Idea to Review Estate Plan

When preparing for the year-end tax planning, one of the best things you can do to make sure everything is in place and in order would be to review your estate plan. It's always a great idea to just take a double look at it just in case you realize any mistakes that have been made so you'll be able to easily fix it.

According to a law journal named the Legal Intelligence, “The end of the year is a great time to review your estate plan (or make a resolution to review in 2021) to see if changes might be in order (whether because of changes in the tax law, your wealth, your chosen fiduciaries, or objects of your bounty). If you don’t give this some thought at year-end, you might never get around to making desired changes before it’s too late, since none of us can know if we will have any advance notice of the actual deadline.”

Reviewing your estate plan can be extremely beneficial for you since you're able to take another look at it and make any changes that need to be made. Sometimes we often go over something after the first time and realize there are changes to make and this could really help by catching it in time before it does become too late as stated above.

These are just a few strategies that you should think about before the year-end tax planning has arrived. You don't want to be that person that ends up forgetting all about the year-end tax planning and when it actually comes around you feel stressed out and anxious about what to do because you didn't plan properly.