- Make a deductible IRA contribution (tests apply) of up to $7,000 per person($8,000 if over 49) by April 15, 2025 for 2024 and deduct for 2024
- Make a health savings account deposit of up to $4,150 single or $8,300 for family coverage by April 15, 2025 for 2024 and deduct for 2024.
- If self employed, establish and fund a SEP-IRA for 2024 by the extended due date of your tax return and deposit the lesser of $69,000 or 25% of income.
- Some states allow a deduction through April 15,2025 for 2024 contributions to 529 plans. There is no federal tax deduction for this however.
- Small business owners may deduct home office expenses from 2024 if they have a place in their home that is used regularly and exclusively for business using either an actual expense allocation or the IRS safe harbor amount.
- Fund a 2024 Roth IRA for children with earned income. There is no requirement to deposit the maximum. This starts the 5-year clock at a very early age.
- Open a 529 Plan for yourself, spouse, child or grandchild to start the 15 year tax-free Roth conversion clock now.
- 2024 elections made with the filing of the return in 2025:
10T Home Equity Debt election – deduction of home equity line interest with limitations
Sec. 266 real estate tax election – A taxpayer who owns unimproved and unproductive real estate can elect to capitalize annual taxes, interest on a mortgage, and other carrying charges. This offsets gains. Must be elected every year.
Installment sale treatment on real property
Small business $2,500 de minimis expense provision