Santa’s End-of-the-Year Finance Tips – Kiplinger’s Personal Finance

Santa’s End-of-the-Year Finance Tips – Kiplinger’s Personal Finance

What’s up, everybody? It’s your boy, Brandon Copeland, aka Professor Cope, and you are now tuned in to another episode of Cope’ing With Money.

On this episode of Cope’ing with Money, we are reaching the end of the year, and the holidays are in full effect. So, to keep with that holiday theme, we want to keep it festive, keep it fun, keep it flexible. And we are going to be pulling tips and gifts from Santa’s hat.

We are ending 2021 on a high note, but more importantly, we have to make sure that we finish through the line and finish strong to set ourselves up for a huge 2022. That’s why today we’re talking financial tips and tricks for the end of the year.

So, without further ado, it’s time that we start pulling some gifts out of Santa’s hat.

Take Last-Minute Tax Deductions

What we got here, what we got here? Woooooo. Take any last-minute deductions that you can. Now, with the year coming to a close, it’s time to close up our books for our personal businesses, but also us as individuals. However, there might be some places where you can make some last-minute wins going into 2022, especially from a tax standpoint.

For example, you can lower your tax bill in 2022 by making a donation to charity in 2021. And, if you haven’t done so already, for those who are married and filing jointly, you can deduct up to $600 on your tax return. And for those filing as individuals, they can deduct up to $300 on their tax return, depending on the donation that they make.

Like with all these strategies, you want to make sure that you check with your own tax professional or financial advisor to ensure that you are making the best decision for yourself. You can also check out sites like Charity Navigator which rate charities to make sure your donation is having the largest impact possible.

Evaluate Your Investments

Now, let’s reach back into Santa’s hat. What the? Get off me! Here we go.

Take this opportunity to evaluate your portfolio thoroughly and consider selling off losing positions today. If a stock you’ve invested in has lost money, ask yourself: Would I buy more shares at this new lower price?” If the answer is no, it may be time to move on.

Luckily, we can take this capital loss as a deduction on our taxes to offset capital gains from our winning positions or on up to $3,000 of ordinary income.

There are stipulations around how you do this, especially when it comes to stock and security assets. These assets are highly regulated, meaning you can’t just sell your shares one day and then buy them back the next, before the price goes up.

That is not the case, however, in our cryptocurrency positions. Cryptocurrency is decentralized and therefore deregulated. Meaning, it’s possible to sell low to maximize your deduction, and then buy right back in to maximize profits. This is known as a “wash sale loophole.” As always, make sure to research more and find out if this is the right move for you. But, those …….

Source: https://www.kiplinger.com/personal-finance/603989/santas-end-of-the-year-finance-tips

Personal finances