Reduce Your Taxable Income by Being Proactive Now

Joshua Dobi |

As we close out 2023, many of us begin to think about tax season. One question we receive a lot at North Main Financial is: “How can I limit or reduce my taxable exposure?” Unfortunately, there is no one-size-fits-all answer. 


It’s essential to remember that every individual’s circumstances are unique. Every person’s portfolio differs from investments to business interests, so there isn’t one universal answer that applies in all cases. Nonetheless, there are several overarching principles that can shape your financial blueprint. Here are three topics to consider:


Tax-Friendly Investments

The first thing you want to consider is what we sometimes refer to as tax-friendly investments. What does that mean? It’s an expansive category encompassing a myriad of possibilities. Most often, we think about things like Municipal Bonds or Individual Securities. Exchange-traded funds (ETFs) are known for their minimal dividend or capital gains distributions. Even the real estate domain offers opportunities to sculpt a tax-friendly profile for your portfolio.


Year-Round Tax Vigilance

At North Main Financial, we advocate a year-round approach to tax management. This entails an ongoing assessment of whether gains can be offset by losses. By routinely monitoring this dynamic, you position yourself to harness potential tax mitigation, ultimately smoothing the path for your upcoming tax filing season.


Engage a Professional

Our inclination might be evident, yet we wholeheartedly urge you to enlist a seasoned tax advisor, especially if your aspirations gravitate toward a holistic tax management strategy. A professional can unveil unexplored avenues, casting light on ideas that might have previously eluded you. Moreover, they remain adept at pointing you toward novel provisions in the ever-evolving tax code. A consultation with such an expert can potentially unlock tangible value in your pursuit of prudent tax management.


If you have questions about your financial space, give us a call at (704) 987-1425 or pay a virtual visit to our domain, If you wish to schedule an introductory meeting, we would be happy to meet with you at no cost or obligation to you.


These Blogs are provided for informational purposes only and should not be construed as investment advice. Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the authors only and do not necessarily reflect the views of Osaic Financial.