Stephan Joubert Year End Tax Tips the season of giving 7Nov2024

Year-End Tax Tips - the season of giving

By Stephan Joubert CFP®

 

The 2024 tax season is coming to an end and the festive season (otherwise known as the silly season) is upon us. Before daydreaming about that long awaited, well deserved, year-end vacation, why not use this time to look at opportunities to maximise your tax benefits.

It is the season of giving and with this in mind let us give ourselves and perhaps others the gift of financial empowerment. Here are some practical tips for consideration:

 

  1. Maximize Retirement Contributions

Give yourself the gift of a secure future by topping up your retirement annuity (RA). You can contribute up to 27.5% of your taxable income, capped at R350,000 per year. This not only boosts your retirement savings but also reduces your taxable income. You have the opportunity to do so until 28 February 2025 which marks the end of the 2025 year of assessment.

 

  1. Use a Tax-Free Savings Accounts (TFSA)

Spread some holiday cheer to your future self by investing in a TFSA. With an annual contribution limit of R36,000 and a lifetime limit of R500,000, you can enjoy tax-free growth on your investments. As with the RA, you have until 28 February 2025 to do so.

 

  1. Charitable Donations

With the season of giving in mind, why not consider donating to a registered public benefit organization (PBO). Donations to PBOs are tax-deductible to up to 10% of your taxable income. Remember, it is essential to obtain a Section 18A certificate from the organization to claim this deduction.

 

  1. Review Your Investments

Take a moment to review your investment portfolio for any potential capital gains or losses. Consider selling underperforming assets before the tax year-end as it can help offset capital gains and reduce your tax liability. It is important to discuss such actions with your adviser to understand what the long-term implications on your portfolio may be.

As we stand on the cusp of a new year, it's heartening to reflect on the power of giving – not just in the sense of charitable donations, but in the investment we make in our own future and the well-being of others. The strategies outlined above are more than mere tax-saving tactics; they are stepping stones towards a more secure and prosperous tomorrow. The year 2025 beckons with the promise of growth and the continuation of our journey towards financial wisdom and generosity. Let us embrace it with the knowledge that each thoughtful financial decision we make today is a seed planted for a flourishing garden of tomorrow. In this spirit of optimism and foresight, may the coming year be one where our financial endeavours bloom, bringing joy and stability to our lives and to those around us.

 

Read more about Ascor® Tax Services

Ascor®Independent Wealth Managers Tax Services page

 

Related topics:

https://ascor.co.za/retirement-annuities-and-tax-free-savings-accounts-what-is-all-the-fuss-about/

https://ascor.co.za/tax-season-is-here-how-does-it-work/

https://ascor.co.za/the-tax-implications-on-your-retirement-should-you-move-abroad/

https://ascor.co.za/structuring-a-tax-efficient-retirement-and-savings-plan/

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