Year-End Tax Checklist for Investors

⚡In 30 seconds

  • •Essential tax planning tasks before year-end for stock investors.
  • •Uses 2 calculator(s) for hands-on examples

The weeks before year-end are crucial for tax planning. Taking action now can reduce your tax bill for the current year. Here's what stock investors should consider.

Review Capital Gains and Losses

Calculate your net capital gains for the year.

Identify positions with unrealized losses that could offset gains.

Consider the wash sale rule before selling and rebuying.

Maximize Tax-Advantaged Contributions

Contribute to 401(k), IRA, or HSA before year-end deadlines.

Consider Roth conversions if you're in a low tax bracket.

Check contribution limits for the current year.

Plan Dividend Timing

Know when ex-dividend dates fall around year-end.

December dividends count as current-year income.

Consider selling before record date if you don't want the dividend.

Example: Year-End Tax-Loss Harvest

You have $5,000 in gains and a position with $4,000 unrealized loss.

  • 1.Current net gain: $5,000
  • 2.Sell losing position: Realize $4,000 loss
  • 3.New net gain: $1,000
  • 4.Tax saved (at 15% rate): $600
Calculate your tax savings →

FAQ

Can I delay gains to next year?

If you wait until after December 31 to sell, the gain counts for next year. But don't let tax timing override investment decisions.

Key Terms

Tax-Loss HarvestingSelling losing investments to offset gains and red...Capital GainsProfit from selling an investment for more than yo...Wash Sale RuleIRS rule preventing loss deductions if you rebuy t...

Tools & Resources

→ Capital Gains Calculator→ Dividend Income Calculator→ Capital Gains Tax Guide→ Dividends Tax Guide← Back to Guides→ Investment Glossary