Year end is a good time to consider changes that can help you maximize your next tax year. This article lists areas of focus including record keeping and tax liability planning.
All too often, investors (or their accountants and financial advisors) wait until the very end of the year to worry about the losses that can and should be taken for tax purposes. At the very least, a better way is to practice tax-loss harvesting (and be far more proactive in tax planning in general) throughout the year—not just as the annual clock ticks down.
A 1035 Exchange is the exchange of one insurance policy for a newer policy with no tax consequences. It offers an investor the opportunity to exchange an old, outdated insurance contract for a newer contract that offers beneficial features the investor now wishes to include. For example, a policy owner might choose a contract with lower costs, a higher death benefit, the drawing of monthly installments or different investment options.
Capital gains taxes will be owed any time you sell a highly appreciated asset, weather it’s a collector car, investment portfolio or real estate. In addition, you’ll have to pay capital gains taxes on the sale of your business. The last one really hurts. You work hard for decades, put in blood, sweat, and tears, and then owe the government around 25% of the profits on the sale.
Most personal tax credits are allowed to the full extent of your regular tax liability and alternative minimum tax. But, it is important to note that they do not create a refund if they exceed your tax liability. Nonrefundable credits include the child tax credit, dependent care credit, adoption credit, education credits, retirement savings credit, credit for the elderly and disabled, mortgage interest credit, and D.C. first-time homebuyer credit.
Everyone knows that tax-time is never too far off in the future. As inconvenient and time consuming as filing and paying taxes may be, the IRS-imposed penalties for failure to do so are even less pleasant. Fortunately, there are some methods that may be able to potentially save you money on your next tax bill.
Taxes. Just the word can fill people with anxiety, but the truth is, with careful planning and excellent record keeping, most tax troubles can easily be avoided. Here are some tips for some of the most common sticky tax situations and tax related questions.
Solar tax credits are available for both residential and commercial solar technology implementations which were originally installed in between the above mentioned period, or in case of new home occupancy – If the occupancy date falls in between the above dates. While it is not entirely clear whether the tax credits are available for additional capacity installations or purchase and installation of previously used equipment, the language of the law seems to favor any kind of expenditure on installation of solar technology.
Tax management may not rank high on your list of favorite phrases, but the truth is, staying on top of your taxes now is the only way to prevent IRS headaches later. Here are five essential ways to manage your taxes, and avoid potential trouble:
A critical component of any financial or retirement plan is a comprehensive tax strategy. In a nutshell, the goal of such a strategy is to capitalize on every opportunity the government makes available to you to cut the taxes you will pay on your income, investments, retirement portfolio and estate.