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2023 Important Tax Planning Information

As we wrap up 2023, it’s important to take a closer look at your tax and financial plans and discuss steps to reduce taxes and help you save for your future. With the current political climate, there has been minimal tax legislation. Looking to the future, the potential for change is on the horizon, and we continue to closely monitor any potential tax legislation and update you accordingly.

We’re here to help explain tax and financial planning opportunities. If you are interested then please contact us at your earliest convenience to discuss your situation so we can develop a customized plan. To maximize tax savings some tasks need to be completed before 12/31/23. 


-Review investment portfolio to consider harvesting losses prior to year-end to offset large capital gains.

-Charitable giving including cash, non-cash, and donor-advised funds; contributions are limited to 60% of adjusted gross income.

-Maximize retirement contributions; if age 50 or older, consider a catch-up contribution.

-Consider accelerating deductible expenses if sum of mortgage interest and taxes paid are close to exceeding the Standard Deduction; $13,850 Single, $27,700 Joint, $20,800 Head of Household

-Consider tax benefits of purchasing a plug-in electric vehicle; both Federal and Colorado

-Home energy tax credits up to 30% of the cost are available for installation of certain energy-saving equipment for personal residence

-Zero out flexible spending accounts to avoid forfeiture of funds unless employer plans allows a 2 1/2 month grace period

-Avoid estimated tax penalties; pay 90% of 2023 estimated tax or 100% (110% if AGI exceeds $150,000) of 2022 tax liability

-If age 73 and older, take required minimum distributions from qualified retirement plans and IRAs.

-Fund college savings accounts; eligible for a Colorado state income tax deduction if a CollegeInvest 529 plan


REMINDER TO ALL S-CORPORATION OWNERS: Health insurance premiums paid for a 2% (or greater) shareholder must be included on the shareholder-employee W2; this includes medical insurance premiums paid on behalf of the shareholder, their spouse and dependents; if premiums are paid personally, have corporation reimburse shareholder-employee – PLEASE CONTACT YOUR THIRD-PARTY PAYROLL PROVIDER TO ENSURE PROPER INCLUSION OF PREMIUMS PAID PRIOR TO THE FINAL PAYROLL

-Get caught up with bookkeeping to have a better picture of current tax situation 

-Deferral of income and accelerating expenses may help save taxes 

-Consider purchasing and placing in service certain property and equipment before end-of-year to take advantage of bonus depreciation and/or Section 179 depreciation

-Write-off obsolete inventory and bad debts

-Set-up a qualified retirement savings plan for employees; some small employers may qualify for a tax credit

-Employee Retention Credits are still available; however, the IRS is warning employers to be cautious of third parties taking improper positions related to ERC eligibility, claiming the credit inaccurately can result in severe consequences

-Some small businesses may qualify for a tax credit when providing employees with group insurance purchased through a Small Business Health Options Program Marketplace


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