We know that you are probably not thinking about absolutely anything tax related, but we wanted to let you know that our tax organizer packets are going out in the mail this week. Also, lest you forget all the last minute tax maneuvers, we have provided them here for you:
- Contribute to the Connecticut Higher Education Trust (CHET), Connecticut’s 529 college savings program before year-end. Mailed contribution checks must be received by December 30th and online contributions must be made prior to 4pm (EST) on December 30th to meet the tax deadline. For more information, go to aboutchet.com
- Make your 4th Quarter 2016 CT estimated tax payment to take the deduction on your 2016 taxes
- Make your January Real Estate Tax payment in December to take the deduction on your 2016 taxes
- Last chance to harvest your gains and losses for 2016 with your capital transactions
- If you turned 70 ½ in 2016, take your first Required Minimum Distribution (RMD) in 2016 (to prevent two distributions in 2017)
- You have until 12/31/2016 to make any 2016 deductible business expenses. Use your credit card and pay off in 2017
- Make any charitable contributions by Dec. 31, 2016. Check must be mailed and/or credit card must have a 12/31 transaction date. Don’t forget your favorite charities for 2016!
MORE COMPLICATED, BUT IMPORTANT:
If you’re negotiating with your mortgage lender to sell your home for less than you owe on the mortgage, be sure to get the contract signed before December 31st. Ordinarily, forgiven debt is taxable, but Congress extended through the end of this year a provision that excludes from taxes up to $2 million in forgiven mortgage debt on principal residence. The exclusion will apply to mortgage debt forgiven in 2017 only if the agreement to discharge is under a binding written agreement entered into in 2016.
We are, as always, here to help!