No one likes to pay more taxes than necessary. If you would like to reduce your taxes before the year’s end, there are several ways to do it—but there is not much time left for most tax strategies. You need to move quickly for most options if you want to lower your tax bill this year.
Choose Donor-Advised Funds
Creating or using an already established donor-advised fund (DAF) to contribute to your favorite charity can give you a considerable tax break. This tax strategy enables you to donate money directly to the charity without tax consequences.When your charitable gift is donated directly to the charity, you avoid the capital gains tax on your contribution. SVB says you can donate cash, various kinds of stock, required minimum distributions (RMDs), and possibly even real estate through a DAF.
