MID-YEAR TAX PLANNING CHECKLIST


Article Highlights:

  • Mid-Year Planning

  • Avoiding Unpleasant Surprises

  • Events That Have Tax Consequences

All too often, taxpayers wait until after the close of the tax year to worry about their taxes and miss opportunities that could reduce their tax liability or financially benefit them. Mid-year is the perfect time for tax planning. The following are some events that can affect your tax return; you may need to take steps to mitigate their impact and avoid unpleasant surprises after it is too late to address them. Here are some events that can trigger tax consequences. Did you (or are you going to):

  • Get Married, Divorced, or Become Widowed?

  • Change Jobs or Has Your Spouse Started Working?

  • Have a Substantial Increase or Decrease in Income?

  • Have a Substantial Gain from the Sale of Stocks or Bonds?

  • Buy or Sell a Rental?

  • Start, Acquire, or Sell a Business?

  • Buy or Sell a Home?

  • Retire This Year?

  • Reach Age 72 This Year?

  • Refinance Your Home or Take Out a Second Home Mortgage This Year?

  • Receive a Substantial Inheritance This Year?

  • Take Advantage of Tax-Beneficial Retirement Savings?

  • Make Any Significant Equipment Purchases for Your Business?

  • Purchase a New Business Vehicle and Trade-in or Dispose of the Old One?

  • Adequately Document Your Cash and Non-Cash Charitable Contributions?

  • Keep Up With Your Estimated Tax Payments?

  • Make Any Unplanned Withdrawals from an IRA or Pension Plan?

  • Add a Solar Electric System to Your Home or Purchase an Electric Vehicle?

  • Hire Veterans’ or Other Individuals in Your Business Who May Qualify for the Work Opportunity Tax Credit?

  • Trade or Sell Cryptocurrency?

  • Incur Expenses Adopting a Child?

  • Start Receiving Social Security Benefits?

  • Exercise an Employee Stock Option?

  • Start Using a Part of Your Home for Business This Year?

  • Exchange Real Properties Used in Your Trade or Business or Held for Investment?

  • Start a Retirement Plan in Your Self-Employment Business?

  • Make Gifts of Over $16,000 to Any One Individual This Year?

Of course, these are not the only issues that have tax consequences. If you anticipate or have already encountered any of the above events or conditions, it may be appropriate to consult with us—preferably before the event—and definitely before the end of the year. We partner with certified tax professionals to keep you on track.



This blog is meant for educational purposes only. Articles contain general information about accounting and tax matters and is not tax advise and should not be treated as such. Do not rely on information from this website as an alternative to seeking assistance from a certified tax professional. Perlinger Consulting partners with certified tax professionals to assist our clients.

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