- How to Avoid Overpaying Your Taxes
Getting a tax refund can seem like a financial windfall, but it means you’ve overpaid your taxes and given the government an interest-free loan. While some taxpayers prefer to receive a lump sum refund, others view tax overpayments as a missed opportunity to have their money work for them. That’s because the extra money paid… read more…
- What Are the Imputed Interest Tax Rules?
Imputed interest rules can turn what seems like a simple act of generosity into a taxable event. These IRS regulations require interest to be calculated and reported on certain transactions, even when no interest is formally charged. The goal is to ensure fair taxation on arrangements involving deferred payments or below-market interest rates. Because tax… read more…
- What Is a Gift Loan and How Does It Work?
A gift loan is essentially a loan with an interest rate well below the market average, or even no interest at all, which can be a strategic way to support family members financially or for estate planning purposes. As beneficial as these loans may appear, with their potential tax benefits and flexible repayment options, they… read more…
- What Is Net Investment Income and How Is It Taxed?
Net investment income (NII) is defined as the profit gained from investments after deducting certain related expenses. This includes various forms of income such as interest, dividends, rental income and capital gains. It’s essential to know not just what comprises NII, but also how it’s calculated and the tax implications it carries, especially for those… read more…
- 9 Common Tax Mistakes and How to Avoid Them
The more money you make, the higher your tax liability could be. And making a mistake in your filing can end up costing you more in fees and penalties. Here’s a roundup of common tax mistakes that could cost you money this tax season. A financial advisor who specializes in tax planning could also help… read more…
- How to Make a Charitable Gift From Your IRA
Each year, you can make a tax-free charitable gift from your IRA known as a qualified charitable distribution (QCD). These distributions allow you to meet your annual required minimum distribution without paying taxes on that amount. To do so, you must transfer the assets from your IRA to the charity directly. The amount you can… read more…
- Do I Have to Worry About Taxes if I Loan a Family Member $45,000?
It’s common for family members to lend money amongst themselves, and many choose to charge less than market interest rates as a favor to loved ones. However, the IRS does care about these transactions so there are some things to think about as you’re planning such a loan. While the IRS does afford a break… read more…
- How Does the IRS Verify Cost Basis?
The IRS expects taxpayers to keep the original documentation for capital assets, such as real estate and investments. It uses these documents, along with third-party records, bank statements and published market data, to verify the cost basis of assets. This is an issue that will come up if the IRS has reason to believe that… read more…
- Do I Have to Worry About the Gift Tax If I Give My Son $75,000 Toward a Down Payment?
Unless you have given away more than $13.99 million in your lifetime, a $75,000 gift will not trigger the federal gift tax. Using this for a down payment also does not affect the result. A financial advisor with estate planning expertise can help you navigate the gift and estate taxes. Connect with a fiduciary advisor… read more…
- What Is a Graduated Income Tax?
A graduated income tax is the same thing as a progressive income tax system, where you pay a larger percentage of tax on your income as you earn more money. This system works differently from the flat tax system, in which everyone gets taxed at the same percentage of their income. Here’s a breakdown of… read more…
- What Is a Flat Income Tax and How Does It Work?
A flat income tax system is one where everyone is taxed at the same rate, no matter how much money they earn throughout the year. Many people argue that it is a fair way to tax everyone in an equal manner because an alternative progressive system sees you paying a higher percentage of tax as… read more…
- My Dad Left Me $450k in an IRA, But I’m in the 32% Tax Bracket. How Should I Structure My Withdrawals?
There are a couple of different sets of rules around inherited IRAs and you’re subject to theleast flexible. While there are more options for a spouse or someone who’s chronically ill ordisabled, a minor child, or someone not more than 10 years younger than the deceased IRAowner, you have just 10 years to withdraw the… read more…
- How to Avoid Prohibited Transactions With Your Self-Directed IRA
A self-directed IRA is a retirement savings plan that allows you to decide what investments will be made. These accounts can hold a variety of investments and provide opportunities that you may not have with other accounts. However, there are certain rules you must follow with a self-directed IRA, like the prohibited transactions rule. Violating… read more…
- I’m Selling My House to Downsize for Retirement, and I’ll Net $620k. Do I Have to Pay Capital Gains Taxes?
When you sell your primary home, the IRS allows you to exclude a significant portion of the profit from your taxes. This exclusion – $250,000 for single filers and $500,000 for married, joint filers – is large enough that many sellers don’t end up paying federal taxes on the capital gains from a home sale.… read more…
- I’m Receiving $3,500 Per Month From Social Security. How Can I Reduce My Taxes?
Social Security can provide a steady source of retirement income. The amount you receive generally depends on how much you earned during your working years and the age at which you begin claiming benefits. In 2026, someone who earned the maximum taxable income throughout their career and waited until age 70 to claim benefits could… read more…
- What Documents Do I Need to File My LLC Taxes?
If you are the owner of an LLC and want to file the correct tax return for your business, the job starts with gathering the right documents. You’ll need records to validate all your business’s income, deductions, expenses and other figures reported across various forms. The tax forms you’ll use vary depending on whether you… read more…
- How to Reduce Your Tax Liability on a Roth IRA Conversion
Converting your current retirement accounts to a Roth IRA is typically a very tax-efficient strategy. It can help lower your lifetime taxes significantly. However, it does come with a large up-front bill. While there’s no way to avoid conversion taxes completely, you can restructure them to make this much more manageable. By staggering out your… read more…
- End-of-Year Tips: 2026 Tax Rule Changes
As the year winds down, it’s important to set aside time to ensure your 2025 taxes don’t result in unwelcome surprises in 2026. Effective year-end tax planning generally falls into two categories: proactive strategies that may help reduce your tax burden, and required tasks that can lead to penalties if neglected. Reviewing both can help… read more…
- How to Avoid the Social Security Tax Torpedo
While retirees may be chagrined to discover that taxes don’t end when they leave the workforce, an unseen threat looms behind the U.S. tax code. The Social Security tax torpedo is as destructive as it sounds, blowing up the budgets of unsuspecting retired folks eagerly awaiting their first Social Security check. However, having a clear… read more…
- Can My Capital Gains Push Me Into a Higher Tax Bracket?
It’s nice to see the total value of your investments growing over time, but are you aware that significant growth can put you in a higher tax bracket? This is one way that many people end up owing a lot more tax than they anticipate. Long-term capital gains can’t push you into a higher tax… read more…
- How Rental Income Is Taxed in Retirement
Retirement involves thoughtful planning and strategic financial decisions. Rental income taxation plays a significant role in retirement planning. Understanding how it works, the benefits, potential risks and uses can help retirees make informed decisions. A financial advisor can help you determine what your taxes could potentially be based on your individual situation, including where you… read more…
- Ways to Reduce Your AGI
When it comes to your finances, understanding the various components that make up your taxable income is crucial. Adjusted gross income (AGI) is a key element of that equation. It’s essentially your total income from all sources after you’ve made certain deductions and adjustments. However, there are a number of ways to reduce your AGI… read more…
- Do I Have to Pay Capital Gains Tax Immediately?
Understanding when to pay capital gains tax is important for both individual investors and businesses. This tax is applied to the profit, or capital gain, made from selling assets like stocks, bonds, property and precious metals. It is generally paid when your taxes are filed for the given tax year, not immediately upon selling an… read more…
- Is Social Security Included in Your AGI?
Social Security benefits are included in your adjusted gross income (AGI) if your combined income, which consists of half of your Social Security benefits and other sources of income, exceeds a certain threshold. This can affect the taxation of those benefits and your eligibility for various tax credits and deductions, which in turn can impact… read more…
- Tax Efficiency of ETFs: What Benefits Do They Offer?
The tax efficiency of exchange-traded funds (ETF) derives from their unique structure and trading mechanisms. Unlike mutual funds, the trading of ETFs does not trigger capital gains taxes until the investment is sold. This factor can prove advantageous for investors wanting to minimize the impact of taxes on their investment returns. Imagine an investor who… read more…