3 Reasons to Start Tax Planning This Summer!

Joshua Dobi |

We’re almost to the halfway point in the calendar year, and that means tax season. No, this isn’t a bad joke. We’re not suggesting that you set aside summer vacation to plan for the upcoming tax season, but there are things you can be doing now that will help you in the future.


With six months left in the year, now is an excellent time to consider taking advantage of tax possibilities. Don’t wait until Santa is on your rooftop and you’re trying to address everything in one week. As you know, many things are calendar specific regarding taxes. That means you have from January 1st to December 31st to log the activity so that it applies to that calendar year.


Here are three items to consider when trying to get a head start on tax season.


Charitable Contributions

If you’re planning to make charitable contributions, planning for that in advance is a great way to not shock the system from a financial standpoint. If there are specific dollar amounts you want, or perhaps even need, to create some tax benefits, now’s the time to plan for that. 


Tax Loss Harvesting

Many of you have had declines in your portfolios since the beginning of the year. Not true for everyone but people with stock or bond portfolios; they may have decreased in value over the last several months. This presents tax-loss harvesting opportunities. Tax-loss harvesting is an opportunity to gain some capital losses that you may be able to use to offset capital gains. Depending on your situation, you could take advantage of it today, or you may be able to carry those losses forward if you don’t need them for this tax year. It’s a powerful planning tool because you’re declaring the losses for this year based on the values below your cost basis. You’re using those losses for this year to offset some capital gains, but even better, if you don’t need them this year, you can carry them forward. With a bit of maneuvering, you may be able to take advantage of some losses inside your portfolio, so it’s a tool to be aware of.


Quarterly Tax Payments

If you are a small business owner or independent businessperson making quarterly tax payments or in retirement, make sure your cash flow is lined up for the remainder of the year. It’s disheartening when those quarterly payments are due, and things don’t line up cash flow-wise. Make sure you are squared away for the rest of the year to meet your obligations, especially if you anticipate some cash increases before the end of the year.


If you have questions about your financial space and how to plan now for the 2022 tax season, call us at (412) 928-8801 or visit us at www.oakwoodfinancialgroup.com. We’re always happy to discuss your financial goals and answer your questions.


These Blogs are provided for informational purposes only and should not be construed as investment advice. Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the authors only and do not necessarily reflect the views of SagePoint Financial.