Investment Tax Mistakes to Avoid 💸

– DUPLICATING, FORGETTING OR USING THE WRONG 1990S

Errors when connecting a custodian account to tax preparation software, forgetting about an account or using out-of-date tax reports can result in a miscalculation of your taxes due.

– FORGETTING TO REPORT QUALIFIED CHARITABLE DISTRIBUTIONS (QCDS)

If you are over the age of 70.5, you can make contributions to a charity from a qualified charity IRA. Make sure the amount of your QCDs reported by your custodian makes it on to your return.

– FORGETTING TO CARRY OVER INVESTMENT LOSSES

Make sure you have a copy of last year's return when calculating this year's taxes so you don't miss any capital loss carry over you need to claim.

– NOT REPORTING NONDEDUCTIBLE IRA CONTRIBUTIONS

With a traditional IRA, you will not be taxed on any after-tax dollars you contribute, so make sure you track the cost basis of any non-deductible IRA contributions you make.

– REPORTING CAPITAL GAINS INCORRECTLY

Keep track of the initial cost of your investments, especially if you got them before 2011. You cannot always rely on custodians to report the correct cost basis amount.

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