- Guide to U.K-U.S. Cross-Border Tax Planning
U.K.-U.S. tax planning involves understanding how income, residency and asset ownership are taxed under both British and American law. Dual residents, expatriates and cross-border investors often face parallel filing obligations, with each country maintaining its own system for taxing worldwide income. While a bilateral tax treaty exists to help reduce the chance of double taxation,… read more…
- How to Calculate Your Taxable Income: Step-by-Step Guide
Knowing your taxable income helps you make smarter choices about deductions, retirement contributions and how much tax to withhold. It can also prevent surprises at tax time. If your finances are more complex—like having multiple income sources or major life changes—a financial advisor can help you lower your taxes while following IRS rules. How to… read more…
- Cross-Border Tax Planning: A Comprehensive Guide
Cross-border tax planning involves structuring your finances to account for tax laws in more than one country. Whether you are an expatriate, a business owner with international operations or an investor earning income abroad, differing tax rules can shape how income, gains and assets are taxed. Factors such as tax treaties, residency rules and reporting… read more…
- How Much Can You Inherit Without Paying Taxes?
An inheritance can offer helpful financial support, but it may also come with tax considerations. The taxes you might owe depend on the type of asset, federal and state laws, and the size of the inheritance. Most estates are not subject to federal estate tax because of the high exemption limit, but some states have… read more…
- How to Avoid Capital Gains Taxes in Washington State
Washington State imposes a 7% capital gains tax on the sale of certain long-term assets, including stocks and business interests, above an annual exemption threshold. Although the tax does not apply to all investments, many residents still seek legal strategies to avoid the Washington State capital gains tax. These can include strategies like asset relocation,… read more…
- What Is Earned Income? Examples and How to Calculate
When it comes to taxes and financial planning, you need to know the IRS has different rules for different types of income. Earned income, the money you make from working, affects everything from how much taxes you pay to whether you qualify for certain deductions or credits. Whether you’re earning a paycheck from an employer,… read more…
- Inc. vs. LLC: Key Differences, Pros and Cons for Taxes
Choosing between a corporation (Inc.) and a limited liability company (LLC) affects how your business is taxed, how profits are shared and how much paperwork you need. While both LLCs and corporations can elect corporate tax treatment, corporations are structured by default as separate tax entities, which can make it easier to retain earnings (reinvest… read more…
- What Is Withholding Tax and How Is It Calculated?
You’ve likely noticed the IRS withholds a portion of your paycheck before it ever reaches your bank account. This is due to withholding tax, a system the IRS uses to collect income tax throughout the year. Whether you’re an employee trying to fine-tune your paycheck or a business owner handling payroll, you should know how… read more…
- How to Minimize or Avoid Taxes on Your Venmo Transactions
Whether you are splitting a bill or selling handmade goods, the IRS may expect you to report certain payments. This is especially the case for business-related transactions. If you are using Venmo regularly, it is important to know when taxes apply, as well as how to minimize or avoid Venmo taxes. With recent updates to… read more…
- 5 Ways Billionaires Avoid Taxes: Strategies and Examples
Billionaires often avoid taxes using legal frameworks, advanced planning, and strategic investments. While their strategies can be complex, some of the same tactics are available—and legal—for everyday taxpayers, just on a smaller scale. From investing in real estate to borrowing against their assets, these methods may offer insight into effective tax management. Here’s a closer… read more…
- 6 Tax Benefits of Having a Child: Credits and More
The IRS offers a number of tax benefits that support families. These opportunities can help you keep more of your income and plan more effectively for your family’s future. But the rules can be nuanced. Eligibility may depend on your income level, filing status and the age of your child. A financial advisor can help… read more…
- What Are Pre-Tax Benefits and Deductions?
When evaluating a job offer, salary isn’t the only factor to consider. Pre-tax benefits can have a big impact on your take-home pay and overall financial health. You can save money for specific expenses before taxes, lowering your taxable income and the amount of income tax you owe to increase your spendable earnings. If you’re… read more…
- Tax-Exempt Interest Income Examples
Certain investments, such as municipal bonds, can generate interest that is exempt from federal, and sometimes even state and local, income taxes. This makes them especially appealing to high-income earners, retirees and those looking to build a more tax-efficient portfolio. However, not all interest income qualifies. Knowing which sources are truly tax-exempt can help you… read more…
- LLC vs. Corporation: How to Decide for Your Business
Choosing between an LLC and a corporation can affect how you pay taxes, raise money, handle paperwork and manage your liability. Both offer limited liability, but they differ in flexibility, tax rules and how they operate. Your choice should match both your current business needs and your long-term plans. A financial advisor can help you… read more…
- Form 8396: How to Claim Mortgage Interest Credit
Form 8396 is used to claim the mortgage interest credit. This is a nonrefundable federal tax credit available to certain homeowners who receive a mortgage credit certificate (MCC) through a state or local housing agency. The credit is designed to make homeownership more affordable for low- and moderate-income individuals by allowing a portion of the… read more…
- Form 8283: How to File for Noncash Charitable Contributions
When you donate noncash items—such as artwork, vehicles, clothing or other property to a qualified charitable organization, you must report those contributions using Form 8283: Noncash Charitable Contributions if the total value exceeds $500. This form helps document the nature of the donation, how the value was determined and whether an appraisal was conducted. While… read more…
- Puerto Rico Tax Benefits for Americans: What to Know
As a U.S. territory, Puerto Rico can offer tax incentives not available on the mainland. This status allows it to offer tax incentives for individuals and businesses that aren’t available on the mainland. The island’s tax advantages are primarily governed by Acts 20 and 22. These regulations aim to stimulate economic growth by attracting new… read more…
- What Is the Federal Corporate Income Tax Rate?
The federal corporate income tax rate in the U.S. is a flat 21% as of 2025. This rate applies to corporate profits and affects how much income a company keeps after taxes. In addition to the federal rate, businesses may also face state corporate taxes, which vary by state and increase the total tax cost.… read more…
- Tax-Exempt Interest on Form 1040: How to Report and Examples
Reporting tax-exempt interest on Form 1040 is required even though the interest is not taxed. This type of income often comes from municipal bonds and must be listed on your tax return to follow IRS rules. A financial advisor can help you track and report this income correctly as part of your overall tax strategy.… read more…
- How Are Bonuses Taxed in 2025?
Bonuses paid by employers get special tax treatment and could have a significant impact on an employee’s tax situation. In the United States, bonuses are typically considered supplemental wages, which means they are subject to different withholding rules than regular income. There are two ways bonuses can be taxed: the percentage method or the aggregate… read more…
- Straight Line Depreciation: Definition and How to Calculate
Understanding the financial health of a business involves a lot of accounting. One of the most popular methods for determining the value of a business is straight line depreciation. Investors often choose the straight line method for its simplicity and consistency. Straight line depreciation shows how an asset’s value declines over time. This method aids… read more…
- Noncash Charitable Contributions: Rules and Examples
Charitable donations are not just limited to cash contributions. Many individuals and businesses choose to make noncash charitable contributions for anything from clothing and household items to real estate and stocks. Noncash donations must be made to qualified organizations, and, in many cases, donors may need to determine and document the fair market value of… read more…
- Form 4952: How to Claim Investment Interest Expense Deduction
Form 4952 helps investors who borrow money to finance their investments deduct the interest paid on those loans. This tax deduction can offset investment interest costs but comes with specific limitations and eligibility criteria. The deduction can only be applied to interest expenses related to investments in taxable income-generating assets, such as stocks and bonds.… read more…
- Where to Find Tax-Exempt Interest Income on Your Taxes
Tax-exempt interest income is an important part of many investors’ portfolios, and knowing where to find it on your tax forms is essential when it comes to preparing your tax return. While this type of income— commonly earned from municipal bonds, certain U.S. savings bonds and other qualifying investments—is not subject to federal income tax,… read more…
- Tax-Exempt Interest Income: What It Is, How It Works, Examples
Tax-exempt interest income is earned primarily from municipal bonds and other qualifying investments that are exempt from federal, and sometimes state, income taxes. By holding these investments, taxpayers can reduce their taxable income while still earning passive returns. However, tax-exempt interest income may still be subject to other tax considerations, such as the alternative minimum… read more…