Year-End Tax Planning & Strategies Overview

December 18, 2023

Dear Clients & Friends:

Tax_Planning_StrategiesWe are providing this information to help with year-end tax planning. It has been organized into five sections.

  • Tax Planning & Strategies Overview (see below)
  • What’s New for 2023
  • Checklist for Individuals
  • Checklist for Businesses
  • Payroll & 1099 Reporting


It is important that you first read this overview which sets forth the underlying assumptions and concepts.

Year-end planning needs to be done on an individualized basis, taking account of the specific situation and planning goals of each taxpayer. The discussion and lists provided are not comprehensive and specific strategies affecting your particular tax situation may not have been included. We can identify and explore opportunities with you to help you cut your tax bill by preparing a personalized tax plan for you. Let us know if you would like us to help with your tax planning.

This discussion of year-end tax planning is generally oriented to lowering 2020 taxable income often by deferring taxable income into next year (2024) and accelerating expenses into the current year (2023).

However, where special circumstances exist, a taxpayer may wish to reverse this strategy by accelerating taxable income and deferring expenses to achieve the opposite effect. A few examples for your consideration:

    • A current year loss in a business may create the opportunity to accelerate income into the current year since some or all it may be off set. Remember that there are loss limitation rules that need to be considered in planning how much of a loss is usable.
    • Realized capital losses can mostly only off set capital gains. If you have a $20,000 capital loss, and only $5,000 capital gain, only $8,000 of the loss will be utilized in the current year. The $5,000 gain will be off set and an additional $3,000 loss is allowed against other 2020 income, but the remaining $12,000 capital loss is carried forward to future tax years. To utilize all the capital loss, you can sell assets with unrealized gains (“harvesting” strategy).

There may also be limitations or consequences to moving income and deductions between years. There are special considerations for each entity type (Individuals, Corporations, LLCs, etc.).

Long-term planning needs to be considered for your financial future. As you consider year-end tax planning, be sure to consider retirement, education and estate planning issues. Do you know if you are putting enough aside for retirement, your child’s college, or for your family should death or disability occur? Do you feel like your investment portfolio mix or management may need a change? We can help you assess these important needs… Please don’t wait until it is too late!

We appreciate your business and look forward to serving you this next year!


Rick Howard, CMA, CPA
President & Owner

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Circular 230 Disclosure: This is to advise you that, unless expressly stated, nothing in this communication (including any attachment or other accompanying materials) was intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding any federal tax penalties, or for promoting, marketing, or recommending a partnership or other entity, investment plan or arrangement to anyone.


Quick Links to Specific Year-End Tax Planning Strategies & Checklists:

√   Tax Planning & Strategies Overview                <– YOU ARE ON THIS PAGE
–     Year-End Tax Planning – What’s New for 2023
–     Year-End Tax Planning Checklist for Individuals
–     Year-End Tax Planning Checklist for Businesses
–     Year-End Checklist for Payroll & 1099 Reporting