Investing Guide at Deep Blue Group Publications LLC Tokyo: Eric Tashlein - Tips for retirees to trim 2014 taxes

With the holidays looming, taxes probably rank among the bottom of items you are eager to think about, especially if you are a retiree. They won’t be due until April, right?

Sure, but that April 15, 2015, tax bill relates to income received during 2014, and there are only a few weeks left to make adjustments to this year’s numbers. Here are some tips aimed at retirees who want to trim their tax bill:

• Harvest your losses. Look over your non-retirement accounts for any investments that lost money during the year. You can make those losses work for you by selling the investments and writing off the losses against your gains. (Be aware of the “wash-sale” rule that prevents you from writing off losses if you make essentially the same investment within 30 days of the sale.)

• Defer any income. If you are selling a business, land or other substantial asset, consider spreading your payments over several years. Taking a lump-sum payment will skyrocket your income.

• Be more charitable. Give more to your favorite charities and take the deduction. Beyond that, you can start a donor-advised fund, which opens opportunities for additional tax-saving strategies, and you can donate appreciated securities, which allows you to deduct the market value of the asset without paying taxes on your gains.

• Limit your income. If you are in the 10 percent to 15 percent tax bracket, you currently pay no federal income tax on long-term capital gains — as long as your taxable income doesn’t exceed $36,900 for singles and $73,800 for joint filers.

One way to remain within the lower brackets is to limit your IRA withdrawals to the required minimum distributions. If you need more income to pay the bills, you can withdraw money from taxable accounts and sell securities. These strategies can be complex, so your financial advisor should do the planning.

• Give to loved ones. You can give up to $14,000 a year to as many people as you want without triggering federal gift and estate taxes (double it to $28,000 by giving from both yourself and your spouse). Any amount above $14,000 per person per year may eventually be subjected to gift taxes, but only once your lifetime total giving exceeds $5.34 million (for 2015). If you give more than $14,000 in one year to one person you have to fill out IRS Form 709, but this is just a formality until your giving exceeds the $5.34 million lifetime exclusion amount. For all of the above discussions, it’s always a good idea to have financial adviser involvement.

Eric Tashlein is a Certified Financial Planner™ and Principal of Connecticut Capital Management Group, LLC, 67 Cherry St. in Milford. He can be reached at 203-877-1520 or through www.connecticutcapital.com. This is for informational purposes only and should not be construed as personalized investment advice or legal/tax advice. Please consult your advisor/attorney/tax advisor. Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., A Registered Investment Advisor. Cambridge Investment Research Inc., and Connecticut Capital Management Group LLC are not affiliated.