Three tax-planning conversations worth having before December
A short, opinionated list of the year-end moves that actually move the needle for individuals and small-business owners in the Upstate.
Year-end planning is a misnomer. The good moves are decided in October and executed by mid-December — and the great moves are decided in March of the prior year. Still, December is when most of our calls come in, and there are three conversations worth having before the calendar flips.
First: how much of this year was unusual? A bonus, an exercised option grant, a property sale, a Roth conversion — anything that pushed your AGI above or below its normal range opens doors that close on December 31. Bunching deductions, accelerating or deferring income, harvesting losses, and adjusting estimated payments all turn on knowing the answer to that single question.
Second: are your retirement accounts where you want them? Maxing the 401(k) is the easy part; the better question is whether your contribution mix (traditional vs. Roth) still matches your projected bracket in retirement. SECURE 2.0 changed the catch-up rules for higher earners — we wrote about that here.
Third: who are you giving to, and how? Donor-advised funds, qualified charitable distributions from an IRA, appreciated stock, and direct gifts to family members all have very different tax outcomes. If charitable giving is part of your year, the vehicle matters as much as the amount.
None of this is novel. What is novel is sitting down for thirty minutes before December to actually run the numbers instead of guessing in April. Pick up the phone.
Questions about your situation specifically?
Posts are general; advice is personal. A short call is the best way to know whether any of this applies to you.