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Finance experts explain what expenses you shouldnottake on before the end of the year.
Also seeeight smart year-end tax planning tips for better financial outcomes.
This period should be for reflection and preparation, not for splurging on luxury items or major home upgrades.
Such expenses can severely disrupt your financial equilibrium, especially without adequate planning, he said.
I suggest postponing additional donations until next year.
This can help maximize your deductions over multiple years.
Business Equipment
Business owners should also consider the timing of their equipment purchases for tax purposes.
If their business income is lower this year, delaying the purchases until next year is better.
They might require more deductions next year, McGlynn said.
Often, these are driven by a spur-of-the-moment inspiration rather than careful consideration.
Evaluate your past usage of similar services before adding new expenses.
Therefore, paying these expenses before the end of the year is not beneficial, McGlynn said.
While a new president could make policy changes, thats still to be seen.
Mortgage Interest
Mortgage interest write-offs can be significant for people who are itemizing their expenses.
it’s possible for you to defer the expense to next year and claim the deduction benefit.
While tax planning is crucial, hasty investments can lead to poor asset allocation and suboptimal returns.
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