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As the year comes to a close, now is the time to review potential financial moves to help minimize your tax burden heading into 2025. Proactive year-end taxplanning can lead to significant savings and set you up for financial success in the new year.
Informally fund nonqualified deferred compensationplans If the business has a nonqualified deferred compensationplan for key employees, it may make sense to informally fund that plan in 2023 to ensure the company has the cash flow to meet the future obligation.
Additionally, if the donation consists of appreciated securities or assets, the donor can avoid capital gains taxes that would otherwise arise from selling those assets. Due to the situational nature of ISOs and NSOs, it’s advantageous to work with a tax advisor to understand the tax impact of exercise stock options.
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