Things To Do Before Year-End

Don't wait until Dec. 31st! Here are some considerations that may be important to the financial health of your practice. Planning now may pay off in the long-run.

Money & Credit

Things To Do Before Year-End

Whether you're a new practitioner or a seasoned veteran, with year-end just around the corner, financial planning is imperative. Wise and prudent strategies from both a personal and business perspective are essential to minimize taxes and enhance your bottom line.

A few simple ideas before the ball comes down in New York's Time Square include:

  • Consider purchasing supplies and equipment in this calender year. Accelerating business expenditures can provide deductions for the year.
  • Depending upon your personal situation, you may want to defer income or bonuses into next year. Timing is critical with financial strategies.
  • Establish and fund a retirement program. Contributions to qualified plans are tax deferred and grow tax free until monetary distributions are made.
  • Donate to your favorite non-profit charities. There are so many worthy organizations both within and outside the profession, who can benefit from your support and generosity. Contributions of these types are also tax deductible.
  • Consider selling investments/securities which have had losses. These can offset other gains within your portfolio and lower your tax liabilities.
  • Explore estate planning to insure the passage of assets in the most efficacious fashion. Annual tax free gifts to loved ones may be a preferred method.

Having a year-end game plan, should be a part of both your short and long term financial planning.

Simple tactics can reduce your taxable income and leave more money in your pocket. While these suggestions should be considered, I strongly recommend that you review your personal situation with a professional and...HAPPY NEW YEAR!!!

The information in the NCMIC Learning Center is offered solely for general information and educational purposes. It is not offered as, nor does it represent, legal or professional advice. Neither does this information constitute a guideline, practice parameter or standard of care. You should not act or rely upon this information without seeking the advice of an attorney familiar with the specific legal requirements of the state(s) in which you practice. If there is a discrepancy between the site and an insurance policy you have with NCMIC, the policy will prevail.