- How to Calculate the Marginal Tax Rate
Marginal taxation systems like the U.S. federal income tax system increase the percentage of income owed to taxes as a taxpayer’s income increases. There are seven income brackets. Your marginal tax rate will also be affected by your filing status,… read more…
- How to Avoid Depreciation Tax on Rental Property
It can pay to be a responsible rental property owner. For instance, if you’re always investing in your rental property and making improvements, not only will your tenants appreciate it and remain tenants longer, you can get a depreciation deduction… read more…
- What Are Long-Term Capital Losses?
A long-term capital loss refers to money that you lose on investments held for more than 12 months. The alternative is a short-term capital loss, money lost on investments that you held for less than a year. When you do… read more…
- How CDs Are Taxed: Tax Planning Guide
Since the Federal Reserve has raised its federal funds effective rate to the highest since December 2007, interest rates on various types of loans have also increased. That’s bad news for anyone trying to take out new loans like mortgages or… read more…
- Do I Have to Pay Tax on Inherited Savings Bonds?
Inheriting savings bonds can provide you with an unexpected windfall. However, there’s one important question to ask: Do I have to pay tax on inherited savings bonds? The short answer is yes, you generally will be responsible for taxes owed… read more…
- Is Long-Term Care Insurance Tax Deductible?
Long-term care insurance can be an important part of planning for the twilight of your life. Despite everyone hoping they’ll be healthy and active until the end of their days, most of us end up needing a bit of help… read more…
- How to Avoid Capital Gains Tax on Collectibles
Collecting is a pastime to which a great many people are drawn. The satisfaction of having a complete set of old stamps or unearthing a rare bottle of wine is quite easy to understand. However, a less easy-to-understand aspect of… read more…
- How to Avoid Capital Gains Tax on Mutual Funds
In the long run, if you sell an investment asset for a profit you will owe capital gains taxes. But for active investors, it’s important to understand that the IRS gives you a few ways to defer those taxes. This… read more…
- Trust Tax Rates and Exemptions for 2026
A trust is a legal entity that holds money and assets for future distribution or management. For example, you might create a trust for your children’s college education, putting money into it which they can withdraw when they go to… read more…
- How to Avoid Capital Gains Tax on a Business Sale
There’s a lot to consider when selling a business and tax planning is at the top of the list. When you sell a business or business assets at a profit, the IRS expects to receive a cut in the form… read more…
- How to Avoid Paying Taxes on a Lawsuit Settlement
Winning or settling your lawsuit can be exhilarating. After you’ve received the settlement money and paid attorney fees, most people assume that the rest is theirs to keep. However, some settlements are subject to taxes. And, unfortunately, many people don’t… read more…
- How Savings Accounts Are Taxed
You are required to report and pay federal taxes on any interest income you receive from a savings account. The income is taxed as unearned, which means you’ll escape payroll taxes, but you will owe federal income tax on it… read more…
- Differences in Hiring a Tax Preparer vs. a CPA
If you’re like most taxpayers, you may not need either a tax preparer or a certified public accountant (CPA). There are exceptions, though. Maybe you’re self-employed, own a small business or have lived in several jurisdictions. In these cases you… read more…
- 7 Tax Saving Strategies for High-Income Earners
Earning a higher income can mean paying more in taxes at both the federal and state levels. You might assume that you’re stuck with a bigger tax bill because you earn more but that’s not always the case. There are… read more…
- How Much Should You Save for 1099 Taxes
Working as an independent contractor or small business owner can bring tremendous freedom—but it can also bring headaches at tax time if you’re not careful. In addition to filing income taxes each April, you’re also required to set aside money… read more…
- What Is the ISO AMT?
If incentive stock options (ISOs) are part of your compensation package, knowing what they are, what they can do for you and how their tax treatment is going to affect you in the future is important. At the very least, you have to determine how they will affect your federal income taxes when you exercise… read more…
- How to Avoid the Gift Tax
The gift tax is a tax levied on any unilateral transfer (a gift) from one person to another. The federal tax is aimed partially at making sure wealthy families don’t use gifts to bypass the estate tax. The federal gift… read more…
- What Is the Convenience of the Employer Rule?
Remote work has become more popular in recent years and is among the many trends that have accelerated due to the COVID-19 pandemic. While remote work is not new, the rise in the number of people working remotely has created tax challenges for some employees and states. As a result, some states have adopted the… read more…
- What Is a Tax Loss Carryforward?
A loss carryforward lets a taxpayer use a loss incurred in one year to reduce tax obligations in a future year. Businesses and business owners can carry forward net operating losses when expenses exceed income. Individual investors can carry forward capital losses after selling investments for less than they paid. For help with taxes and… read more…
- How to Avoid Capital Gains Tax on Foreign Property
Selling property abroad can create tax obligations both in the country where the property is located and in the United States. While U.S. taxpayers must generally report and pay capital gains tax on profits from selling foreign real estate, several strategies can reduce or eliminate this burden. These include using foreign tax credits, qualifying for… read more…
- How to Buy Property With Delinquent Taxes
Buying property with delinquent taxes can seem like a hidden shortcut into real estate investing, promising low prices, unique opportunities and, in some cases, double-digit returns. However, the process works very differently from a traditional home purchase, and whether you end up earning interest or walking away with a property depends on the type of… read more…
- How to Pay Taxes on Stocks
If you sell stocks at a profit, you will owe taxes on those gains. Depending on how long you’ve owned the stock, you may owe at your regular income tax rate or at the capital gains rate, which is usually… read more…
- Writing Off Losses on Sale of Investment Property
Selling an investment property at a loss may not be ideal but it may be necessary if you need cash or you simply no longer wish to own the property. Before selling rental properties or investment real estate at a loss, consider how it could affect your taxes. For instance, you might be wondering whether… read more…
- How Do I Avoid Capital Gains Tax on Gold?
If you invested in gold and sold it for a profit, you are probably looking for ways to minimize your taxes. Smart tax planning is crucial for the success of your investments. And there are definitely ways to minimize capital gains… read more…
- How to Avoid Paying Taxes on a Divorce Settlement
Divorce settlements can be extremely complicated. While it makes eminent sense to work with a financial advisor as you plan your finances for a divorce, there are several key areas that can hold promise of avoiding or at least minimizing… read more…