Here is a checklist of things to do before the end of the tax year.
Realize losses on stock while substantially preserving investment position
Convert investment income taxable at regular rates (e.g., interest income) into qualifying dividend income
Arrange with employer to defer bonus until 2019
Increase basis in S corporation or partnership to make possible a 2018 loss deduction
Use credit card to prepay expenses
Take advantage of tax credits such as the solar energy credit (expires in 2019), small business
health insurance credit (not for individuals), domestic activities deduction (not for individuals), and
the research credits (not for individuals)
Pay contested taxes to deduct them this year while continuing to contest them next year
Put new equipment in service before year-end to qualify for the 100% bonus first-year
depreciation allowance, Vehicles over 6,000 pounds allow for additional deductions
Make expenditures qualifying for a business property expensing election
Settle insurance or damage claim if this will maximize casualty loss deduction
Apply bunching strategy to “miscellaneous” itemized deductions, medical expenses, and other itemized deductions to increase deductible amounts
Increase withholding to eliminate or reduce estimated tax penalty
Set up self-employed retirement plan
Make gifts taking advantage of the $15,000 gift tax exclusion
Watch out for marriage penalty in regard to year-end marriage or divorce plans
Consider deferring a debt cancellation event until 2019
Decide whether to elect to deduct investment interest against capital gains and/or qualified dividends
Avoid personal holding company tax by making dividend payments
Take steps to avoid or minimize income tax on Social Security benefits
Structure real estate deal to avoid paying interest on tax deferred under installment method
Step up level of participation in business activity to meet material participation standard under
passive loss rules
Dispose of passive activity to free up suspended losses
Ask employer to increase withholding of state and local taxes to pull the deduction of those taxes
into 2018