5 Smart Tax Moves to Make Before the End of the Year

If your AGI is $100,000, the first $500 you give won't be deductible. At $200,000 AGI, that's $1,000 of giving that provides no tax benefit.

So what can you do? Bunch multiple years of charitable donations into 2025 through a donor-advised fund (DAF), said Drew Lunt, founder and advisor at Scratch Capital in Boise, Idaho.

“You get a large deduction in the contribution year, removal of appreciated assets from your taxable account, growth potential inside the DAF and flexibility to give to charities over time," Lunt said. "This is especially powerful after a business sale or large capital gains event.”

Contributing appreciated securities rather than cash helps you avoid capital gains taxes on the appreciation while still getting the full deduction, he added.