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End Of 2023 Tax Tip

Performance Property Real Estate Question

A: Gerald Lucas here with an end of 2023 tax tip for you:

Tax Tip: Consider deferring your income. Income is taxed in the year it is received – so it may be advantageous to delay receiving income so you can pay taxes next year rather than paying it this year particularly if you expect to be in the same or lower tax bracket next year. Your situation may vary depending on if you are an employee or if you are self-employed.

If you are an employee, for tax purposes, you may want to consider deferring a year-end bonus until next year.

If you are self-employed, consider delaying sending invoices until late in the year to ensure that you won’t receive payment until next tax year for the same reason. It’s very important that you make your decisions based on your specific financial situation.

For more real estate tips and information visit my blog at geraldlucas.com.