By Joe Edgeworth There are the standard tax reductions every taxpayer knows about, but there are three others few realize that they can deduct to reduce their taxes. Plus a bonus! Volunteer work donations Many American volunteer their time and services to nonprofit organizations instead of making Read more >>
By Bill Broich Regardless of what happens with the DOL ruling and other regulatory issues, one thing will become more and more relevant in our business. Congress, the individual states and local agencies will turn a hard focus on elder abuse. Elder abuse is increasing, at least the reporting of it is. In the California Read more >>
By Bill Broich Tax Scams: IRS Dirty Dozen It is tax time and with it will come many offers to lower your taxes and in some situations to avoid them altogether. These helpful hints can usually be grouped together under one heading: Scams. Tax scams are prevalent throughout the internet, here are a few that are Read more >>
By Bill Broich The furor over the Obamacare health plan continues to be at the forefront in congress. The Affordable Care Act (ACA) has been facing a difficult time when it comes to costs, expenses and funding. Recently a large insurance provider threatened to pull out of the program, leaving many other companies to wonder Read more >>
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 It offers an investor the opportunity to exchange an old, outdated insurance contract for a newer contract that offers beneficial features the investor now wishes to include.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.