Proactive Tax Planning for 2023 by Andy Gilinsky
September 20, 2023

As we approach the 4th quarter and the end of the year, it is more important than ever to do a tax projection, so you are not surprised by any balances that are due in April 2024. The projection may highlight areas where you should be focusing on to do some additional tax planning or act before the end of the year to reduce your tax liabilities. If you have a business, should you purchase a new car or another piece of equipment to maximize depreciation deductions before the end of the year?

Traditional year-end tax planning strategies include accelerating deductions into 2023 and deferring income to 2024.  For many taxpayers, year-end strategies to keep income below certain thresholds may be valuable such as for the net investment tax, additional Medicare tax and 20% pass through deduction.  Of course, the nuances of every individual’s situation must be taken into account.

Strategies that can be implemented immediately include:

Income Deferral:

  • Enter into installment contracts
  • Defer bonuses
  • Hold appreciated securities
  • Postpone Roth conversions
  • Minimize retirement distributions
  • Delay billing for services
  • Structure like kind exchange treatment

Deduction Acceleration:

  • Bunch medical expenses into 2023
  • Bunch charitable deductions into 2023
  • Donate into a donor-advised fund
  • Donate appreciated securities
  • If you can deduct on a business or rental property prepay:
    • Business periodicals
    • Professional dues
    • Tax preparations fees
  • Maximize retirement plan contributions
  • Recognize capital losses if they are available

If you are interested in discussing additional tax-saving recommendations, please do not hesitate to contact Andrew T. Gilinsky, CPA, PFS, MBA, CFP at 610-265-4122 or email