With tax rates currently at historic lows and almost certain to get higher in the near future, particularly on high earners and those with significant capital gains, you may be looking to make some last-minute moves that could potentially save you thousands on taxes before the end of 2020.

If you’re among those concerned about a potentially higher tax bill in the future, here are ten ideas to consider now:

1. Realize investment gains in 2020 and defer losses and business expenses until next year.
2. Do a Roth IRA conversion before year-end.
3. Wait until 2021 to make large charitable donations, which can help offset higher tax rates.
4. If you are an executive for a company, discuss the possibility of restructuring your compensation package, including deferred compensation, stock options, and non-qualified stock options.
5. If you own a business, consider receiving compensation through S-corporate dividends. These are not subject to employment taxes.
6. Explore the possibility to tax your business as a C-corporation, which can reduce your personal exposure to potentially higher tax liability.
7. Sell assets that are subject to long-term capital gains now (could be taxed at 0%, 15% or 20% rate), rather than later (at a possible 39.6% rate ­– or higher!).
8. For estate planning purposes, think about making gifts now that are currently under the estate exclusion amount but which may later be subject to estate tax.
9. Establish a trust to protect assets.
10. Talk to a financial advisor!

Uncertainty makes most people anxious. A financial advisor can help walk you through the various possible scenarios to come so that you can be confident in your financial and tax plans.

If you’d like to have a free, no-obligation conversation with one of our advisors, click here to set up an appointment.