Expert Insights: Partner Adam Bateman on Year-End Tax Planning for 2023

Watch our recent video interview as Partner Adam Bateman discusses 2023 year-end tax planning strategies.

Read the Transcript

[Adam Bateman]

00:00:02
At Moore Colson, we strive to be proactive tax advisors and our year-end planning process is really geared towards that.

00:00:08
Our business clients often ask us if they need to acquire assets before the end of the year in order to save taxes, and we always tell them that there’s not a need to buy things just to save tax dollars. But if you’re planning to buy equipment early in the next year, it may be beneficial to go ahead and make those purchases before the end of the year.

00:00:24
Individuals need to make most of those year-end planning moves before December 31st. However, there are a couple items that can still be done the following year, so by April of 2024, and you still receive the benefit in 2023.

00:00:37
Those items include making an IRA contribution, contributing to a health savings account or also to a Georgia 529 college savings plan.

00:00:45
One of the things that we always recommend is that they maximize their pre-tax retirement contributions. For 2023, the maximum amount you can contribute to your 401(k) is $22,500, and if you’re over 55, you can also contribute an additional $7,500, which makes the maximum $30,000.

00:01:04
At Moore Colson, we are asked a lot about charitable giving strategies as people are heading towards year-end. So one of the things that we recommend to our clients is you may want to consider what we call bunching of contributions, making more than one contribution or making larger contributions in one tax year rather than spreading them out over time.

00:01:21
We often recommend that our clients evaluate a strategy at year-end related to charitable giving that involves donating appreciated stock. This allows them to be able to receive the deduction for the full fair market value of that security, so if it is significantly appreciated, they get that full value while not having to pay capital gains tax on that gain for the security.

00:01:42
You should meet with your tax advisor to make sure that the strategies you’re implementing are optimal for your tax situation. We recommend all businesses and individuals go through the year-end planning process in order to avoid surprises come April 15th.