When you rebalance your portfolio this year, remember that selling both winners and losers in the same year lets you offset your capital gains with losses. In addition, you can use up to $3,000 in net losses to offset ordinary income for the year. Your investment strategy should take taxes into account but should not be [...]
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Deadline for filing 2012 individual tax returns. Deadline for filing 2012 partnership returns. Deadline for filing 2012 gift tax returns. Deadline for making your 2012 IRA contribution. Deadline for filing 2012 estate and trust income tax returns. First installment of 2013 individual estimated tax is due. Due date for calendar-year corporations to pay first installment [...]
READ MORE »Unearned Income: Income from investments, such as interest, dividends and capital gains is considered “unearned” income.
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Elect S Corporation status. If your sole proprietorship or partnership is producing a net profit in excess of a reasonable compensation for your time, you could save money by incorporating and electing S status. The deadline for making an election for calendar-year 2013 is March 15. If you had self-employment income in 2012, you can contribute [...]
READ MORE »Capital-loss Carryover: Capital losses can be used to offset capital gains, and up to $3,000 of any excess loss can be deducted against other income, such as your salary. Losses not currently deductible because of the $3,000 limit can be carried over to future years.
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It’s October already, which means that 2013 is right around the corner. If you haven’t been proactive in planning for your 2012 income tax filing, there is still time. With so much uncertainty as to agreements on tax law, it is no doubt, a chaotic time for planning. However, with the Bush tax cuts set [...]
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Recently the United States Tax Court ruled that a taxpayer selling unimproved lots on a regular basis cost him capital gains treatment (Flood, TC Memo. 2012-243). A day trader (who also ran a real estate business) purchased 250 lots over the course of 8 years at bargain prices with the intention of reselling them at [...]
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There is much uncertainty over what will happen to US income tax rates in 2013. But what we do know is top rates on capital gains and dividends will rise by 3.8% for those with a modified adjusted gross income (AGI) over $200,000 or $250,000 for married taxpayers filing a joint return. The new surtax [...]
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Yesterday we addressed some of the more basic questions you may ask if you found yourself in a sudden position of wealth due to winnings or inheritance. Today we want to focus on the impact your wealth will have on insurance, your estate and gifting. Impact on Insurance Unfortunately, being wealthy may make you more [...]
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What would you do with an extra $10,000? Maybe you’d pay off your student loans, nagging bills or credit card debt. Maybe take that vacation you’ve been dreaming of for so long. What if that $10,000 was suddenly an extra million, 5 million or more? Maybe you were lucky enough to win your state lottery [...]
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