As we approach the end of the year, it’s time to connect with your Tanager Financial Advisor to explore key tax planning opportunities. Here are some considerations to guide your year-end tax planning for 2024:

1. Utilize Your $18,000 US Gift Allowance ($36,000 for Married Couples):
   • The 2024 US gift tax exclusion has increased to $18,000 per person. This means you can make tax-free gifts to anyone, and married couples can double this to $36,000.
   • Record your gifts carefully, as they may qualify for the UK’s Potentially Exempt Transfer rules, where gifts are exempt from inheritance tax if the donor survives for seven years.
2. Complete Charitable Donations:
   • Gifts to charity can provide a tax deduction of up to 60% of Adjusted Gross Income in the US for cash contributions, 30% for non-cash donations.
   • Donating through dual US-UK qualified charities could allow you to claim Gift Aid Reclaim and receive a tax credit on your UK tax return.
3. Required Minimum Distributions (RMDs):
   • Ensure you’ve completed your RMDs by year-end if applicable. Failure to do so could result in penalties of up to 50% of the missed RMD amount.
4. Consider Using US Inheritance and Gift Tax Allowances Beyond $18,000:
   • If you’re in a position to make larger gifts, consider leveraging your lifetime gift and estate tax exemption, currently at $12.92 million per individual. These limits are set to drop after the 2026 sunset (as things stand currently).
5. Use the $185,000 Annual Gift Allowance for Non-US Citizen Spouses:
   • If structured correctly, this allowance can transfer significant value, such as a portion of a jointly owned property, without triggering US gift taxes.
6. Donate Non-Reporting Funds to Charity:
   • Making charitable gifts using non-reporting funds can mitigate punitive UK taxes, as selling these funds is often taxed at the UK’s marginal income tax rate.
7. Pay UK Tax by December 31st:
   • Even though the UK deadline for tax payments is January 31st, settling any amounts due by December 31stensures you can claim the appropriate tax credit on your US 2024 tax return.
8. Consider a Roth Conversion if Your 2024 Income is Lower:
   • If you’ve had a lower-income year and hold US retirement accounts partially funded while being a UK resident, a Roth conversion might replace future taxable income with tax-free retirement income in both the US and UK.
9. Tax Loss Harvesting:
   • Review your portfolio for realized losses from previous years. These can be used to offset current year gains, potentially reducing your tax liability.

This is not advice or a recommendation. Consult with Tax Advisor and Estate Planning Attorney to determine whether any of these actions are appropriate for your personal circumstances.

Certain investments carry a higher degree of risk and may be unsuitable for some investors. Past performance is not a reliable indicator of future results. Investments can go down as well as up, and you may not recover the amount you originally invested.