5 Last-Minute Tax Tips for 2018

You have 10 days left before the new year — plenty of time to make moves that could improve your tax return. ------------------------------------------------------------------------------------------------------------------------------------------------------ [View this email in your browser]( You have 10 days left before the new year, which might not seem like much but it's plenty of time to make moves that could improve your 2018 tax return. Find them along with what we think you should really focus on when evaluating marijuana companies, rules to maximize your 401(k) and more. – Katie Carrera, Stock Up Editor Last-Minute Tax Tips for 2018 --------------------------------------------------------------- Tax planning is something you should do all year long, not just at the end of it. But that doesn't mean there aren't some ways you can potentially put dollars in your pocket when you file your return. - Sell a losing investment or two. The IRS [allows you]( to use capital losses to offset capital gains, so if you're sitting on some losing investments and considering selling, it could be smart to do so before the end of the year. Even if you didn't sell any investments for a profit in 2018, you can still use as much as $3,000 in losses to offset your other taxable income. One big caveat here: This isn't to suggest that you sell a stock just because its price went down. However, if your original reasons for buying one of your losing stocks no longer apply, or if you think you could put that capital to better use elsewhere, then it's worth considering. - Do you have unpaid student loan interest? You can deduct as much as $2,500 in qualifying student loan interest annually. If you're on an income-based repayment plan, the deduction applies to all student loan interest you pay — not just the amount you're required to pay. If your required payment doesn't cover all your interest each month, you might have some built-up interest. Making an extra payment in 2018 could help you maximize the deduction. - Defer some income, if possible. This is especially handy if you're self-employed. By reducing the amount of income you receive in a given year you can reduce your income tax. But anything you move from this year into next can result in a higher income next year, so take that into consideration. [Read the rest, including a tip for homeowners, here.]( This is for educational use only and should not be considered tax advice. For individualized tax advice and planning, please consult your personal accountant. --------------------------------------------------------------- Enjoy Stock Up? 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If you're just getting started saving for retirement and want to understand the details of your 401(k) plan — from determining whether it's a good plan to evaluating some of the strategies you can employ — this article has you covered. If you're already saving in one (That's great!), there are also useful tips for how to make the most out of your 401(k) account. [Check out the article here.]( --------------------------------------------------------------- FEATURED PODCAST --------------------------------------------------------------- [Answers]( Let's Debunk Some Retirement Myths! Motley Fool Answers hosts Robert Brokamp and Alison Southwick dive into some of the common misconceptions about retirement with help from contributor Maurie Backman. [Subscribe on iTunes]( --------------------------------------------------------------- What Really Matters When Investing in Marijuana Stocks If you're among the investors intrigued by marijuana stocks, it's important to know that there's more to assessing these companies than looking at their peak production capacity. Be sure to look at these factors, too: - Product diversity: In states that have legalized recreational marijuana such as Colorado, Washington, and Oregon, we've seen a rampant oversupply of dried cannabis result in a corresponding decline in its price per-gram. Canadian pot stocks that rely too heavily on the dried flower run the risk of having their operating margins trampled within a few years. Companies that focus on higher margin alternative products (think oils, edibles, beverages, concentrates, etc.) could be in better shape over the long run. - International expansion: Canadian demand is only expected to be about 1 million kilograms per year, according to Health Canada, but the country's largest growers are expected to far outpace that mark. It's possible that more than half of all sales are likely to come from foreign markets, which puts companies that have prioritized international expansion in good shape to succeed. - Profits: Prior to the legalization of recreational cannabis in Canada, companies dazzled investors with promises of product diversity, partnerships, and higher output potential. Now that legalization is a reality, businesses must show investors they can live up to those lofty promises. To date, very few marijuana stocks are profitable and it's liable to stay that way in 2019 as companies build out their businesses. [Read the rest, including more aspects of marijuana businesses you should evaluate, here.]( --------------------------------------------------------------- Quick Reads - [What's all the fuss about the Fed?]( Here are some of the ways that the Federal Reserve's decision to raise interest rates can impact you. - [Don't overlook these tech stocks:]( The sector has taken a significant hit, but that doesn't mean there aren't some companies worth evaluating. - [When did you start saving for retirement?]( Find out the average age at which Americans begin to save — and why it may be on the late side. - [3 brand-name value stocks to consider:]( History tells us that corrections aren't uncommon. 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