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Trim Your Future Tax

Bill by Thinking Ahead

on’t procrastinate when it comes to prepping for tax If you won’t have sufficient itemized deductions to exceed the
season. The tax code can be a labyrinth to navigate. standard deduction ($12,550 for single filers; $25,100 for married
DNevertheless, taking action now – while you, your filing jointly), you may wish to bunch deductions by making a large
financial advisor and accountant have time to think through the charitable gift, equal to the total donations you would have made
possibilities and maximize your tax savings – could be more than over several future years. This could help you take advantage of the
worth the effort. Consider adding one or more of these four tax- ability to itemize this year, while in other years you would take the
mitigating moves to your capital gain/loss harvesting and year-end standard deduction.
charitable giving.

Tip 1: Defer your year-end bonus or postpone income
Who can benefit? Those who think they’ll be in the same or lower
tax bracket next year.
What is it? Save on this year’s higher taxes by withholding your
bonus or postponing income until next year when you may be in a
lower tax bracket.
Tip 2: Accelerate deductions

Who can benefit? Those who think they’ll be in a lower tax Seth Townsend, AAMS®
bracket next year. Financial Advisor
What is it? If you anticipate higher taxes this year, accelerate
deductions (e.g., philanthropic donations, property taxes) to get a Dianne S. Townsend, CFP®
larger percentage tax benefit. Senior Vice President, Investments
CERTIFIED FINANCIAL PLANNER™
Tip 3: Accelerate income and/or postpone deductions
Bethany Hellriegel
Who can benefit? Those who think they’ll be in a higher tax
Registered Client Service Associate
bracket next year.
What is it? If you anticipate higher taxes next year, perhaps due
to policy changes or an increase in income, accelerating income 1421 Pine Ridge Road, Suite 300
and postponing deductions may help reduce your 2022 tax bill. Naples, FL 34109
Phone: (239) 513-6500
Consider selling assets at a gain, billing in advance or deferring
Toll Free: (800) 843-2025
deductions until next year.
FAX: (239) 596-5474
Tip 4: Be very generous
www.RaymondJames.com/TownsendFinancial
Who can benefit? High-net-worth families who want to donate
significant amounts. Raymond James & Associates, Inc., member New York Stock Exchange/SIPC
What is it? If you want to make a generous charitable gift,
consider doing so before year-end or establishing a donor advised Please note, changes in tax laws or regulations may occur at any time and could
fund*, which allows you to receive an immediate federal income tax substantially impact your situation. While familiar with the tax provisions of the
issues presented herein, Raymond James financial advisors are not qualified to
deduction even if the funds will not be disbursed until later years.
render advice on tax or legal matters. You should discuss any tax or legal matters
If your tax rates were to decline in 2022, you’d receive a larger tax
with the appropriate professional.
benefit from the deduction due to your current higher rates.
*Donors are urged to consult their attorneys, accountants or tax advisors with respect
to questions relating to the deductibility of various types of contributions to a donor
advised fund for federal and state tax purposes. To learn more about the potential
risks and benefits of donor advised funds, please contact your financial advisor.

82 Life in Naples | December 2021