Minimizing 2014 Taxes

[spartan7886]

I expect to get a one-time six figure bonus next year that will bump us from the 28% tax bracket to 33%. I'm trying to think ahead about how to legally minimize my taxes on it.

We already max both 401ks and the HSA (and two backdoor Roths, FWIW), and I plan to defer the property taxes and remaining donations for this year from Dec to Jan. I also need to sell some company stock, so I will wait for next year and select the IDs with the largest capital losses.

Is there anything else I should look into, either this year or next? DFIL mentioned one year a friend got him into a partnership for some sort of oil company that turned into a limited partnership the following year that did wonders for his taxes since he could write off the initial investment, but I noticed he didn't mention how the investment did as a whole. I have no desire to lose a dollar trying to save 5c.

[mwcpa]

The problems / issues with the DFIL's plan are
1.  passive loss rules.
2.  to invest 5K, as you noted, just to save a few dollars (5c in your note) in tax is as they say, stupid, stupid, stupid.
3.  what do you know about partnership investments.... why would you invest in something just for a tax loss.... refer to number 2 above
4.  have you ever seen the "k-1" (tax reporting document) for one of these investments.... they are complicated to say the least....

you should consider smarter moves, such as:
prepaying any state level income tax for 2014 (watch for AMT)
defer 2013 and accelerate 2015 contributions (charity) to 2014.
consider making "13" mortgage payments in 2014... (accelerate the January 2015 payment into 2014)

I strongly suggest that you see a qualified tax professional in your area, not a person who prepares tax filings in March and April only, but a person who works with the law all year... an EA, CPA, attorney who specialize in tax planning, not just preparation....

[Peace77]

Do you have enough medical expenses to deduct them?  

Do you have charitable donations (either cash or goods such as used clothes, furniture, books, etc) to deduct?

[taz157]

Also you can only deduct $3,000 in capital losses in the year. For example, if your only capital sale during the year was a loss for $10,000, you can only deduct $3,000 in the current year, then $3,000 the following years until it used up or you had enough capital gains to offset it.

[Deleted]

Any possibility of the company deferring payment?

[spartan7886]

No state income tax, as we live in Texas. 

Medical expenses are minimal.

Charitable deductions we were already aware of, hence deferring some from 2013 to 2014. It remains to be decided how much of the bonus will get donated over and above our standard amount - anywhere from none up to endowing a scholarship is under discussion.

I'll only have about $1k worth of capital losses in company stock. I try to keep the position fairly small, hence would be selling anyway. I should look if I have any other losses, I suppose.

Doubtful the company will consider deferring payment, as it's a huge multinational and several thousand people are eligible for the bonus, not just me. I can ask though.

I will look into visiting a tax professional. 

[spartan7886]

I just thought I'd update this. I wound up getting a promotion that bumped me out of the current retention plan into another plan. I didn't realize it would have any affect, as the plans are identical, but they're being treated as separate plans, so I'll get prorated chunks - about 2/3 this year and 1/3 next year.

Archie had the correct solution, though not through any conscious act of mine.