- 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 offers unique tax advantages that set it apart from the mainland. Through programs established under Acts 20 and 22 (now part of Act 60), the island provides significant incentives for individuals and businesses willing to relocate. These laws were designed to stimulate economic development by attracting entrepreneurs, investors and… 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…
- Is There a Tax Break for Paying Your Child’s College Tuition?
Covering the cost of a child’s college tuition can be a significant financial burden. However, several tax breaks can help you reduce your overall tax liability. These include credits, deductions and tax-advantaged savings accounts, which could offset some expenses associated with higher education. Working with a financial advisor can also help you identify other tax… read more…
- 8 Tax Breaks for Independent Contractors
As an independent contractor, you have more flexibility and control over your work, but you also face specific tax obligations. Unlike traditional employees, independent contractors are responsible for self-employment taxes, income taxes and business expenses, which can add up quickly. Fortunately, here are eight tax breaks that can help you lower your taxable income and… read more…
- Alternative Minimum Tax (AMT): What It Is and How It Works
The alternative minimum tax (AMT) is a separate tax system that makes sure people with high incomes still pay some tax, even if they have a lot of deductions. It removes some common deductions, like state and local taxes, and uses different rules to figure out what you owe. It mostly affects people with high… read more…
- How Does Tax-Exempt Interest Income Affect FAFSA?
Eligibility for federal student financial aid is primarily based on income as reported for tax purposes. However, tax-exempt interest income can impact a student’s financial aid eligibility. Interest earned from municipal bonds is an example of this type of income. Although this income is not subject to federal income tax, it is included as part… read more…
- Are There Tax Benefits of Leasing a Car vs. Buying a Car?
When deciding whether to lease or buy a car, you should look beyond monthly payments and interest rates to make a decision. One major factor that often gets overlooked is how each option impacts your taxes. Depending on your situation, leasing a car versus buying one could offer distinct tax advantages, particularly for those who… read more…
- How to Use the Foreign Tax Credit to Offset AMT
The foreign tax credit can help mitigate the impact of the alternative minimum tax (AMT) for taxpayers with income taxed abroad. While the AMT limits certain deductions and credits, it does allow a portion of the foreign tax credit to reduce U.S. tax liability. However, specific rules govern how much of the credit applies, including… read more…
- New Jersey Corporate Tax: What It Is and How It Works
New Jersey applies a graduated corporation business tax (CBT) on corporations, with rates that vary based on income. Recent law changes have added extra fees for some corporations, affecting their total tax costs. Due to these complexities, working with a financial advisor can help businesses stay compliant and find tax-saving opportunities. What Is the New… read more…
- How Are Partnerships Taxed? Step-By-Step Guide
Partnerships are not subject to income tax at the entity level. Instead, they operate as pass-through entities, meaning the partnership’s income, deductions and credits flow directly to the individual partners. Each partner then reports their share of the partnership’s income or loss on their personal tax return. A financial advisor can help partners structure their… read more…
- Section 1250: How It Applies to Real Estate Taxes and Examples
Section 1250 of the U.S. tax code applies to gains from the sale of depreciated business real estate. If a property was depreciated beyond the straight-line method, the extra depreciation is taxed at a higher rate, known as depreciation recapture. Because real estate taxes can be complex, a financial advisor can help investors plan tax-efficient… read more…