My startup company got acquired last week. I’ll get ~ 300K (2017 taxable event). What are things I can / should do to limit my tax hit? (Gifts, other?)

[michael15]

My wife and I file jointly.  We live in California.  Our AGI for 2016 was $230,000.  AGI for 2017 will be similar.  I've held stock in the company since it was founded in 2006.

[SweetieJean]

How much is your GAIN?

[michael15]

Hi SweetieJean.  We initially calculated the payout to be ~ 300K.  (Stocks were initially worth $0.0001 per share, so nearly all of that will be GAIN).  Even if my numbers are off somewhat, we'll have a big long-term capital gains hit.  

So my core question is:
What types of things can I do to limit / offset this tax hit?  
Of those options, what do I need to do before the end of the year?*

*I'm assuming I'll have to move quick and do some things before the end of 2017 (like gifting or inheritance to our son, etc)...

[SweetieJean]

So your total 2017 income will be approx $260k + $300k = $560k?

[TaxGuyBill]

Maxing out your retirement contributions and charitable donations are the main things you can do to reduce your total income tax.

Contributing to a HSA (if you qualify) is good.  In some cases paying your 2017 4th quarter State Estimated Tax payment and pre-paying your 2018 Real Estate taxes may help.

Gifts to Individuals, such as your son, are not tax deductible.

[SweetieJean]

Also be aware that itemized deductions phaseout at that income level.
<a rel="nofollow" target="_blank" href="https://www.forbes.com/sites/kellyphillipserb/2017/04/05/taxes-from-a-to-z-2017-p-is-for-pease-limit...>
And see:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/net-investment-income-tax-faqs">https://www.irs.gov/newsroom/net-invest...>

[SweetieJean · Accepted solution]

Answered in comments.