Something to Think About

By: Gary R. Oman, CPA, PFS, MST

With about a month to go until December 31st, following are several tax reminders:

• Effective tax planning considers both 2024 and 2025.
• If taxable income, excluding capital gains and qualified dividends, on a joint return is less than $94,050, the capital gains tax rate is zero (lower taxable income limits apply to singles and heads-of-household).
• If you turn 73 in 2024, you are required to take your required minimum distribution (RMD) from your traditional IRA.
• Those age 70-1/2 and older can transfer up to $105,000 in 2024 from their traditional IRAs directly to charity and pay no income tax on the distribution.
• You are allowed to give each person up to $18,000 this year without reducing your lifetime estate and gift exemption and not have to file a gift tax return.
• You can contribute up to $90,000 per beneficiary this year to fund a 529 education fund which will be treated and reported as $18,000 gifts each year from 2024 through 2028.

Please give us a call if you have tax or financial questions.

Until next time...

Gary

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