2023 Year-End Tax Planning Checklist

As 2023 draws to a close, Grassi’s Tax Services team is dedicated to helping taxpayers leave no savings behind. Consult this list of tax optimization opportunities to ensure you’ve covered all applicable ones in your individual tax planning this year.

Retirement Savings

  • Maximize employer-sponsored plan contributions (401(k), 403(b), etc.); under 50: $22,500 and over 50: $30,000.
  • Contribute to SEP IRAs up to 25% of compensation (max $66,000).
  • Maximize defined benefit plan contributions (limit $265,000).
  • Contribute to profit-sharing plans, up to the lesser of 100% of compensation or $66,000.
  • Review defined contribution plan contributions (limit $66,000).
  • Maximize IRA contributions ($6,500, or $7,500 if 50 or older).
  • Charitable Contributions
  • Bunch charitable contributions for greater deduction benefits.
  • Consider Qualified Charitable Distributions (QCDs) if over 70 ½.
  • Donate appreciated stock to a donor-advised fund for tax efficiency.

Income Tax Planning

  • Consider deferring income and accelerating deductions.
  • Assess Medicare tax and net investment income tax liabilities.

Capital Gain Planning

  • Evaluate capital gain/loss strategies, including tax-loss harvesting.
  • Understand wash sale rules.

Backdoor Roth IRA Contributions

  • Use Backdoor Roth IRA for high earners exceeding Roth IRA income limits.
  • Plan for tax implications of traditional IRA conversions to Roth IRAs.

Pass-Through Entity Tax Deduction

  • Leverage the Pass-Through Entity Tax deduction to mitigate SALT cap.

Bonus Depreciation Phase-Out

  • Plan for the bonus depreciation reduction from 80% in 2023 to 60% in 2024.
  • Accelerate qualifying asset purchases to maximize 2023 depreciation deductions.

Cost Segregation Benefits

  • Conduct cost segregation studies for real estate to accelerate depreciation deductions.
  • Utilize cost segregation for cash flow improvement and tax deferral.

This checklist is designed to provide a comprehensive approach to year-end tax planning with your Grassi Tax advisor. Each item on the list is a crucial consideration for optimizing your tax strategy as we approach the end of 2023. Contact your Grassi tax specialist or Jason Drucker, Tax Principal, to get started.

Click here to download a printable copy of the 2023 Year-End Tax Planning Checklist.

Jason Drucker Jason Drucker, CPA is a Tax Principal at Grassi, he has more than 10 years of experience providing tax and business consulting services for middle-market businesses and their owners. His clients span the manufacturing and distribution, property management, retail, and wholesale industries. Jason has extensive experience servicing closely held businesses. As a leader in the firm’s Manufacturing and Distribution Practice, he serves as a... Read full bio