END-OF-YEAR TAX TIPS FOR INVESTORS DON’T WAIT UNTIL APRIL
As the year winds down, many people are busy with holiday shopping and travel plans, but smart investors know this is also the perfect time to fine-tune their portfolios and reduce their tax burden. A few proactive steps before Dec. 31 can make a meaningful difference when tax season rolls around. Here are some savvy moves to consider before the year ends. Review your portfolio for tax-loss harvesting. Start by taking a close look at your portfolio. Have you realized any capital gains this year? If so, you may be able to offset those gains by selling investments that have lost value. This strategy, known as tax-loss harvesting, can help reduce your taxable income. For example, if you sold a stock for a $5,000 gain but another for a $5,000 loss, the two cancel each other out, meaning no capital gains tax is due. Just be careful of the wash- sale rule, which prevents you from buying the same (or a “substantially identical”)
investment within 30 days before or after the sale. Violating that rule means you can’t claim the loss. Max out retirement contributions. Your retirement accounts are more than just long-term savings vehicles. They’re powerful tax tools. Contributions to traditional 401(k)s and IRAs can reduce your taxable income for the year, while Roth accounts offer tax-free growth in the future. If you haven’t hit your contribution limits yet, consider making an extra deposit before year-end. For 2025, the 401(k) limit is $23,000 (plus an extra $7,500 for those 50 and older), and the IRA limit is $7,000 (plus a $1,000 catch-up for those 50 and older). Also, don’t miss out on any employer match. That’s essentially free money! Time your gains wisely. If you’re in a lower tax bracket or expecting less income this year, it might actually
make sense to harvest gains instead of losses. Selling appreciated investments during a low-income year allows you to take advantage of the lower long-term capital gains tax rates. Give back and save taxes. Year-end is also the season of giving, and here’s a tax advantage to that. Donating appreciated stocks directly to a charity lets you avoid capital gains tax while still claiming a charitable deduction. It’s a win- win for you and the causes you care about. Don’t forget RMDs. If you’re age 73 or older, be sure to take your Required Minimum Distributions (RMDs) from retirement accounts before Dec. 31. Missing an RMD can lead to steep penalties. If you don’t need the funds, consider directing the RMD to a qualified charity to satisfy the requirement tax-free.
SUDOKU
CRISPY PROSCIUTTO AND CHEESE SLIDERS
INGREDIENTS
3 oz thinly sliced prosciutto 1 package dinner rolls, halved lengthwise
1/2 cup melted butter 2 tbsp Dijon mustard
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2 tbsp Worcestershire sauce 1 tbsp chopped fresh thyme 2 chopped garlic cloves Black pepper, to taste
1/4 cup fig preserves
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3/4 cup shredded fontina cheese 3/4 cup shredded Swiss cheese
DIRECTIONS
1. Preheat oven to 400 F. 2. On a parchment-lined baking sheet, arrange prosciutto and bake for 8–10 minutes. 3. On a separate lined baking sheet, place the bottom halves of the rolls and spread fig preserves over them. 4. Layer with fontina and Swiss cheese. Top with crispy prosciutto. 5. Place the top half of the rolls over the prosciutto and gently press down. 6. In a bowl, mix butter, Dijon, Worcestershire sauce, thyme, garlic, and black pepper. 7. Pour butter mixture over rolls. Cover with foil and bake 10 minutes. 8. Remove foil and bake an additional 10–15 minutes, and separate before serving.
Inspired by HalfBakedHarvest.com
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