If you’ve ever thought to yourself, “The hardest thing in the world to understand is income taxes,” you may be a genius! You see, that little quote was said by the guy who brought us the theory of relativity, the one and only Albert Einstein. Yup, one of the smartest minds the human race has…
Read MoreAs a financial advisor, nearly every client I’ve ever counseled has had one thing in common — their biggest expense has been taxes. For most higher earning individuals, income taxes can account for 40% or more of their income. There is no other expense that even comes close. This is why tax planning is so…
Read MoreThe latest contribution to the CFP®Board’s LetsMakeAPlan.org blog offers insights into the lessons we can learn from our 2017 tax return. While we have all our tax forms and documents handy, this is the perfect time to analyze last year’s finances and prepare for the big changes that will occur in the years to come.…
Read MoreBuying or selling income property has definite tax consequences. A taxpayer should clearly understand them, whether he or she intends to acquire a property or put one on the market. A sale of income property incurs either a capital gain or loss. If you profit from the sale of income property, that profit is considered…
Read MoreAs tax day quickly approaches, Americans are compiling their W-2s, 1099s and charitable contribution receipts. Though many may be looking forward to receiving a refund, others are likely to discover they owe more. In the latest contribution to LetsMakeaPlan.org, CFP®Board offers six tips to help reduce your tax bill to make this season a little less…
Read MoreDo you have a 529 plan account? Then you will want to know about a pair of federal tax law changes which may benefit you and your student, one involving a February 16 deadline. As 2015 ended, Congress passed the Protecting Americans from Tax Hikes Act (PATH). Deep in its fine print were two “sweeteners”…
Read MoreHave you ever wanted to make a major charitable gift? Would you like a significant federal tax break in acknowledgment of that gift? If so, an IRA charitable rollover may be a good financial step to take. If you are age 70½ or older and have one or more traditional IRAs, you may want to…
Read MoreNinety-five percent of married couples file joint federal tax returns. Filing jointly can be convenient. Frequently, there’s a financial advantage, but that does not mean it should be done without consideration. Years ago, there was less incentive to file jointly. That was because the “marriage penalty” for doing so was effectively greater. There is no…
Read MoreThe end of a year makes us think about last-minute things we need to address and good habits we want to start keeping. To that end, here are seven aspects of your financial life to think about as this year leads into the next… Your investments. Review your approach to investing and make sure it…
Read MoreAre you worried about being audited? The fear may be overblown as only 0.86% of taxpayers had their federal returns examined in 2014. Last year, 7.5% of millionaires had their returns scrutinized. Much of this is down to low staffing at the IRS. In 2011, during more prosperous times for the agency, the IRS audited…
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