Tax Cutting Actions to Take Before Year-End

Here are several tax moves to consider as 2021 comes to a close. Accelerate income into 2021. Income tax rates may increase in 2022, with the top income tax rate projected to increase from 37% to 39.6%. If it makes sense, take advantage of 2021’s 37% rate by accelerating income into 2021 and deferring deductions…

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…

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…

Be Prepared For Higher Taxes

“Tis impossible to be sure of anything but death and taxes.” The Cobbler of Preston by Christopher Bullock (1716) This old adage by Christopher Bullock is still true today, but there’s actually a third certain thing in life – fluctuating tax rates! The past 50 years includes a roller coaster of increasing and decreasing tax…

A vacation home or short-term rental can be a tax saver!

Vacationers have recently been eschewing traditional hotels for beachfront community houses, secluded cabins far away from the daily grind of bustling cities and Airbnb lodging. This has presented an opportunity for many home owners and owners of vacation properties with an opportunity to get their own slice of the rental income market. Getting into the…

Late Tax Law Changes…AGAIN!

What you need to know In what is becoming a terrible habit, Congress and the Executive office have once again changed tax laws in the final days of the tax year. The problem Beyond the additional billions added to the national debt, this habit is anything but good will towards men. It requires scrambling from:…

Your Tax Season To-Do List

With tax filing just around the corner, now is a great time to organize your thoughts and records to make the filing process easier. Here are some ideas: Create an April 15 reminder. It’s the deadline for filing your 2019 individual income tax return, completing gift tax returns, making contributions to a Roth or traditional IRA…

Losses that Offer Tax Savings

Capital loss, casualty loss, 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 are…