Will your donations be more powerful this year?
Maybe. Deductions are more valuable when tax rates are higher, and higher-income taxpayers face higher rates in 2013. But the return of the itemized deduction reduction could make your donation deduction less valuable. Also keep in mind that the amount of your deduction depends on various factors, including what you give. For example: Long-term capital…
Maximizing Retirement Goals
Retirement should be something that every individual thinks about. Gone are the days of company pensions that could sustain you through your golden years. It has become more and more the responsibility of the individual to grow and maintain a healthy retirement plan. Forty percent of adults age 50 and older fear that they will…
IRS Issues Final Regulations on New Net Investment Income Tax and Additional Medicare Tax
On November 27, 2013, the IRS released final regulations under Section 1411. These regulations govern the new 3.8% tax on net investment income for certain high income taxpayers that took effect on January 1, 2013. The tax applies to income of individuals, estates, and certain trusts above applicable threshold amounts. While many of the provisions…
Year-end tax planning for your investments
While tax consequences should never drive investment decisions, it’s critical that they be considered — especially this year: Higher-income taxpayers may face more taxes on their investment income in the form of the returning 39.6% top short-term capital gains rate and 20% top long-term capital gains rate and a new 3.8% net investment income tax…
Money Education for the Next Generation
It is no surprise that credit card companies, banks, and loan companies spend an incredible amount of money on marketing their products to consumers. To make matters even worse, the majority of their marketing efforts are seen by young consumers who have not had the benefit of receiving education on making good money decisions. A…
Smart timing of business income and expenses can save tax — or at least defer it
By projecting your business’s income and expenses for 2013 and 2014, you can determine how to time them to save — or at least defer — tax. If you’ll be in the same or lower tax bracket in 2014, consider: Deferring income to 2014. If your business uses the cash method of accounting, you can…
8 Tax Breaks You Might Miss Out On
The year is fast approaching and the time to get your financial ducks in a row is getting shorter. Make sure you are getting all the tax breaks you can qualify for in order to lower your tax liability. There are eight tax breaks expiring at the end of 2013 – take advantage of them…
Beware of the AMT when doing year-end tax planning
As year end approaches, you may be trying to accelerate deductible expenses into 2013 to reduce, or at least defer, tax. But you must beware of the alternative minimum tax (AMT) — a separate tax system that limits some deductions and doesn’t permit others, such as: State and local income tax deductions, Property tax deductions,…