If you invest and live in or around Arlington, the last few weeks of the year matter more than most people realize. Small decisions made before December 31 can shape what your tax return looks like next spring and how comfortable you feel about it.
This guide to year end tax planning is written like we talk with clients every day. Plain language. No fluff. Just practical investor tax tips you can still act on before the year closes. Let’s walk through it together.
Start With a Simple Year-End Checkup
Before making moves, pause and look at the big picture.
Ask yourself a few questions:
- Did I sell investments at a gain this year?
- Do I still own some investments that are down?
- Am I taking money out of retirement accounts now?
We see many investors wait until March and wish they had looked sooner. December gives you choices. January does not.
At Kleiber and Associates CPAs, we start with a short review. Nothing fancy. Just clarity.
If you want a quick second set of eyes, this is a good time to reach out. Visit Kleiber and Associates CPAs
Use Investment Losses on Purpose
This one comes up a lot.
If you sold investments at a gain this year, you may be able to sell other investments at a loss before December 31 to balance things out. This is known as tax-loss harvesting.
Why people care:
- Losses can offset capital gains.
- Extra losses can offset up to $3,000 of ordinary income.
- Unused losses can carry forward.
One thing to watch is the wash sale rule. Buy back too soon and the loss does not count.
We often say, “Let’s slow this down and map the timing.”
If this feels confusing, a short conversation can clear it up.
Don’t Miss Required Distributions
If you are age 73 or older, Required Minimum Distributions are not optional.
Miss one and the IRS penalty can be painful.
Here’s what we remind clients:
- Most RMDs must be taken by December 31.
- The amount depends on your account balance and age.
- Taking more than needed can push income higher than expected.
Some clients also use qualified charitable distributions from IRAs to satisfy RMDs while supporting causes they care about.
If you are unsure whether your RMD is done, now is the time to check.
Be Thoughtful With Charitable Giving
Giving feels good. Timing matters.
To count for this year:
- Gifts must be completed by December 31.
- Stock donations need to settle in time.
- Donor-advised fund contributions must be funded before year-end.
Many families like donating appreciated stock. It avoids capital gains while still allowing a deduction if you itemize.
We often hear, “I planned to give anyway. I just didn’t realize timing mattered.”
If giving is part of your year-end routine, let’s confirm it lines up with your tax picture.
Look at Retirement Contributions and Conversions
December is your last chance for certain retirement moves.
Things to double-check:
- 401(k) contributions through payroll must be done by year-end.
- Catch-up contributions may be available depending on age.
- Roth IRA conversions must be completed by December 31.
Conversions can make sense in years with lower income. They are not for everyone. This is where personalized planning matters most.
If retirement planning feels overwhelming, a short review can simplify it.
Quick Takeaways You Can Scan
- December 31 is a real deadline.
- Losses can be useful if handled correctly.
- RMDs are easy to miss and costly to ignore.
- Giving and investing work better when coordinated.
- Retirement moves deserve a second look before year-end.
Wrapping It Up
Year-end tax planning does not need to be stressful. It just needs attention at the right time.
For Arlington investors, a few focused steps before December 31 can make tax season calmer and more predictable. No rushing. No guessing. Just informed decisions.
At Kleiber and Associates CPAs, this is how we handle it. Straightforward conversations. Clear next steps. No pressure.
If you want to talk through your situation before the year closes, we invite you to start here.
FAQs
Is it too late to do year-end tax planning in December?
No. Many of the most valuable moves happen in the final weeks of the year, especially for investors.
Do I have to sell investments to reduce taxes?
Not always. Sometimes timing income, managing RMDs, or adjusting charitable giving makes more sense.
Should I wait until tax season to talk to my CPA?
Waiting limits options. December conversations give you flexibility before deadlines hit.