By this time of the year, you probably have already filed your income tax return or have the finish line in sight. And through it all, you probably have asked yourself: What else can I do to shave the tax bite on my investment portfolio?
Actually, there’s a lot that can be done, as several types of investments offer at least modest tax-shaving potential. And for the most part, these investment tax benefits weren’t undercut by tax reform.
These are some of the more popular choices:
IRAs: Plenty of versatility
Individual Retirement Accounts aren’t a type of investment but rather a type of account, into which you can place all sorts of stuff and receive tax benefits. All IRAs offer tax-deferred growth of your investment dollars. After that, things get more complex but also more beneficial.
With traditional IRAs, you essentially can deduct the money you put into an account. Then, as noted, it builds up tax-deferred until you withdraw it, when your contributions and gains are taxed as ordinary income.
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