Posted on January 13th, 2014

Many considered Dec. 31, 2013, the final date for year-end tax planning, but there are numerous planning actions that you can take in 2014 retroactive to 2013. 

• Conventional and Roth IRA contributions for 2013 can be made until the April 15 return due date for the payment to be attributed to 2013.

• Contributions for Keogh, SIMPLE and 401(k) can be made up until the due date of the return including extensions. However, the Keogh, SIMPLE and 401(k) plans must have been established before the end of 2013 (Sept. 30 for SIMPLE plans), unlike the IRAs.

• SEP plans can be opened any time in 2014 until the tax return due date, including extensions, and/or payment delayed until then for the 2013 deduction to be allowed.

Stock Sales
• Wash sales occur when stock sold at a loss is reacquired within 30 days before or after the stock’s sale. For sales made in December 2013 that had a loss, repurchasing the stock this month (within the 30-day prohibited period) will cause the 2013 loss to be disallowed and added to the basis of the January 2014 purchased shares. But if you wait more than the 31 day window all losses are recognized.

Conversely if you want to utilize your long or short term capital losses, sell your stocks for a profit and recognize it and offset it to the capital loss carryover and then if you choose to repurchase the stock you will have an increased basis for the future. This can often be useful when considering the alternative minimum tax.

• Credit card charges/expenses made in 2013 for deductible items are reportable on the 2013 tax return even though not paid until 2014 or later.

• Receipts for 2013 charitable contributions must be received by April 15, 2014 for such deductions to be allowable. If qualified appraisals are necessary, they must be attached to the returns. The receipts and appraisals can be prepared in 2014 for the 2013 contributions.