- 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…
- What Is the Limit on Taking the Foreign Tax Credit?
Double taxation can occur when laws from two distinct countries require the same income to be taxed. The Foreign Tax Credit (FTC) is a non-refundable tax credit designed to alleviate this burden for U.S. citizens who earn income abroad by offsetting taxes paid to foreign governments and reducing a taxpayer’s U.S. tax liability. A financial advisor… read more…
- Passive vs. Non-Passive Income: What’s the Difference?
Effective financial planning centers on two main types of income: passive and non-passive. Knowing how each type applies to your financial situation, and how each is taxed, can improve overall tax planning and money management. With this knowledge, you can make more strategic decisions and potentially reduce your tax liability. Talk to a financial advisor… read more…
- What Are the Tax Consequences of Being Added to a Deed?
Property deeds are not just pieces of paper, they hold the power to impact your fiscal situation considerably. Property deeds are legal documents that provide proof of ownership. When you extend ownership rights by adding someone to your property deed, there are tax implications and potential risks associated with the transaction. A financial advisor can… read more…
- Tax Planning for Ultra-High-Net-Worth Individuals and Families
Proper tax planning is essential for managing and preserving wealth. For ultra-high-net-worth individuals and their families, defined as those with $30 million in investable assets, efficient tax management requires an in-depth understanding of tax laws, thoughtful use of available tax benefits and careful long-term planning. The support of a specialized financial advisor is often beneficial… read more…
- Tax Strategies for Short-Term Rental Properties
Renting out properties on a short-term basis can create an additional income stream, but qualifying for favorable tax treatment often requires meeting specific non-passive activity and participation standards. The so-called short-term rental “loophole” is simply a set of rules within the tax code that may allow certain owners to treat rental losses differently if those… read more…
- 529 Plan Tax Deductions for Every State
Opening a 529 plan is a tax-advantaged way to set aside money for college. The money you contribute can grow tax-deferred and qualified withdrawals are tax-free. While there is no federal tax break for making 529 plan contributions, you may… read more…
- Temporary Tax Plan Could Boost Your Standard Deduction By Up to $4,000
A House panel has passed a bill that would temporarily expand the standard tax deduction used by the majority of taxpayers by $2,000 per person for the next two years. The Tax Cuts for Working Families Act (H.R.3936) recently approved by… read more…
- Understanding Pretax vs. After-Tax Investment Benefits
Pretax money is invested before any taxes have been deducted, while after-tax money is invested after taxes have been deducted. Investments in tax-deferred retirement accounts such as IRAs and 401(k)s are made pretax, which means there is a larger sum… read more…
- What Happens To Your Tax Liability With Proper Financial Planning?
Taxes are unavoidable but that doesn’t mean you have to pay more than you owe. What happens to your tax liability with proper financial planning? The simple answer is that it can allow you to minimize what you owe while… read more…
- How to Avoid AMT on Incentive Stock Options (ISOs)
Incentive stock options, or ISOs, can be a lucrative employee benefit. This is particularly true at startup companies, which frequently offer stock options as a form of alternative compensation to make up for under-market salaries. However, when you exercise your stock… read more…
- Tax Loopholes That Could Save You Money
A tax loophole is a tax law provision or a shortcoming of legislation that allows individuals and companies to lower tax liability. Loopholes are legal and allow income or assets to be moved with the purpose of avoiding taxes. This… read more…
- An Independent Contractor’s Guide to Taxes
If you’re self-employed or a freelancer, you likely get paid as an independent contractor rather than an employee. The IRS defines an independent contractor as someone who performs work for someone else, while controlling the way in which the work… read more…
- How Depreciation Recapture Works on Your Taxes
When you sell a depreciated capital asset, you may be able to earn a “realized gain” if the asset’s sale price is higher than its value after deduction expenses. You’ll then be able to recapture the difference between the two… read more…
- Who Should Itemize Deductions Under the Trump Tax Plan
When you file a federal income tax return, you have the choice between taking the standard deduction or itemizing your deductions. The option that you pick should depend on which strategy will maximize your tax benefits. Your calculations may also have… read more…
- How to Avoid Paying Taxes on Inherited Property
Inheriting a home or other property can increase the value of your estate, but it can also result in tax consequences. If the property you inherit has appreciated in value since the original owner purchased it, you could be on… read more…
- Tax Prep Checklist: What You Need to Know
If you’re part of the roughly 60% of Americans who pay someone else to prepare their tax return, then there’s a good chance that you’ve had to make more than one visit to the preparer’s office because you forgot something. Since preparing… read more…
- A Guide to the Federal Estate Tax for 2026
An estate tax is most notably levied at the federal level, and it’s charged to a decedent’s estate when their assets pass on to their beneficiaries. Most estates won’t trigger the federal estate tax though, as it only applies to estates… read more…
- How the LLC Pass-Through Taxation Works
Limited liability companies (LLCs) are what’s called “pass-through entities.” This means that the business does not pay corporate income taxes. Instead, the individual owners or members of the LLC collect its proceeds as income and then pay personal income taxes… read more…
- How to Find a Small Business Tax Advisor
Small business owners can identify tax advisors by asking for recommendations from other professionals such as accountants, seeking personal referrals, checking out professional directories and following leads from advertisements. Before seeking help from a tax advisor, business owners will want… read more…
- Capital Gains Tax on Real Estate Investment Property
Real estate investments can be lucrative assets. However, they can also incur capital gains taxes that weaken your profits. Fortunately, you can implement tactics that reduce capital gains taxes so you can keep more of your money. Although the IRS… read more…