The Mutual Fund Tax Surprise!

Some tax planning tips for mutual fund investors From a tax planning viewpoint heading into the 2021 tax season, here are some great mutual fund tips to avoid a tax surprise. Unless noted otherwise, these tips assume your mutual fund investment is outside of a retirement account like a 401(k) or traditional IRA. Long-term gains…

Turn Losses Into Tax Savings

Capital loss, casualty loss or net operating loss — a loss by any name causes a financial setback. It’s something no one likes to think about, much less experience. But if you do suffer a loss, tax laws may provide a measure of relief in the form of a refund or lower taxable income. Here…

Think Twice Before Amending a Tax Return

Is it always a good idea to amend your tax return if you find an error? There’s usually an element of relief after your annual tax return has been filed. But what do you do if you find an error on your tax return? Should you always file an amended return? Here are some things…

Avoid These 5 Big Tax Mistakes

Don’t let them happen to you! Every year taxpayers are hit with tax surprises that could be avoided if they just knew the rules. Here are five big ones that are easy to avoid with some simple planning: Mistake #1.Not paying estimated taxes.This results in a tax surprise when you don’t calculate an estimate of…

Prepare Your Estate for Higher Taxes

During these hot summer months, discussions about federal tax legislation are heating up in Washington D.C. Sweeping estate tax changes have been proposed, including a reduced estate and gift tax exemption, higher estate tax rates, and a repeal of the step-up in basis rule. Although these changes are a long way from fruition and likely…

Hints to Audit Proof Your Tax Return

Audit rates for individuals are at historic lows. The overall rate is down to a minuscule 0.45% for 2019. But recent proposals out of Washington D.C. would give the IRS up to $80 billion for auditing upper-income taxpayers. And when you consider households with income over $87,000 are considered to be in the top 25%…

Different Tax Rules for Different Assets

Know the rules and avoid a tax surprise! Are you thinking about making a major purchase? Whether that purchase is your primary house, a rental property, shares of stock or a piece of art, begin with the end in mind by thinking through how the property you’re buying is treated for tax purposes when you…

Get More Accuracy in Your Tax Forecasts

With ever-changing tax laws, forecasting your tax obligation is now extremely difficult to do. To make matters worse, this uncertainty can create the need to write a large payment to the IRS and pay penalties to boot! Here are some suggestions to help you manage this for you and your family. The basics of forecasting…

Higher Taxes May Be In Your Future

Here’s what to think about now. There’s little question the tides are moving towards a higher tax environment with multiple trillion dollar spending bills, a new administration, and deficits as far as the eye can see. Instead of feeling helpless, here is a quick look at what might be on the horizon and some thoughts…

Got mutual funds? Pay attention to year-end tax issues

If you’re among the millions of Americans who invest in mutual funds, you need to be aware of the year-end issues that could affect your 2020 tax bill. Year-end distributions. One key fact to be aware of is that mutual funds are usually required to distribute their income annually to shareholders. If you purchase a…