Organization and planning are crucial where finances and taxes are concerned. With tax season here, some people might feel overwhelmed.
According to Jerry Appel, partner at Marcum LLP in Mayfield; Cindy Kula, senior tax manager at Rea & Associates in Cleveland; and Brett Neate, partner at Zinner & Co. in Beachwood, people can do things to get their finances in order for next year’s filings.
“Using the information they are getting right now, whether it is for their investments or real estate ventures, use that information and schedule a time to discuss proactive planning opportunities for the current year,” Neate said. “Clients tend to only think about the forms and filing right now, but forget the planning for next year until the time is right back upon us.”
He added people should also discuss what can be done differently with finances to capitalize on tax benefits.
Appel said people should also do something called “harvesting their losses” on their stock portfolio. This is the practice of selling stocks, mutual funds, exchange-traded funds and other securities that are now worth less than what was paid for them. By harvesting a loss, Appel said investors can offset taxes on other gains and income.