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Dear Clients and Friends,

With the end of 2022 rapidly approaching, now is the time to review your income tax situation and take steps to ensure that you are taking full advantage of the many tax planning strategies available.

Consider the following year-end investment planning tips:
- Sell losers to offset gains from sold winners, with excess capital losses used to offset up to $3,000 of other income.
- Hold appreciated securities for at least one year and one day to qualify for long-term capital gains rates.
- Be strategic in identifying shares to be sold, using specific identification or standing orders.
- Avoid buying mutual funds before the dividend record date to prevent unnecessary tax liability.
- Harvest capital losses, avoiding wash sales by not acquiring the same or similar investments within 30 days.

Nonbusiness planning tips include:
- Taking advantage of a 0% federal rate on long-term capital gains if taxable income is below certain thresholds.
- Securing a deduction for nearly worthless securities by selling them before year-end.
- Considering conversion of traditional IRAs to Roth IRAs, keeping in mind potential tax implications.
- Checking beneficiary designations for retirement plans, pensions, and life insurance policies.
- Gifting appreciated stock to charity, or selling stock at a loss to claim a deduction.
- Maximizing the standard deduction by bunching deductions every other year.
- Taking advantage of the annual gift exclusion of $16,000 per person.
- Helping kids and grandkids through tuition payments or contributions to 529 plans.