- Capital Gains Taxes on the Sale of a Second Home
Capital gains tax applies when you sell an asset for more than you paid for it. While the IRS typically offers an exclusion for capital gains from the sale of a primary home, the rules are a little different when selling a property that you don’t live in full-time. Before unloading a vacation or rental… read more…
- Guide to Capital Gains Exemptions for Seniors
Current tax law does not allow you to take a capital gains tax break based on age. In the past, the IRS allowed people over the age of 55 a tax exemption for home sales. However, this exclusion was closed… read more…
- How to Avoid Taxes on Your 401(k) Withdrawals
A 401(k) plan is a powerful tax-advantaged tool for retirement savers. Employer matches offered by some plans make them even more potent. However, except in special cases you can’t withdraw from your 401(k) before age 59.5 Even then you’ll usually… read more…
- How Do I Avoid Paying Taxes on an Inherited IRA?
The standard tax rules on individual retirement accounts (IRAs) change when you’re dealing with inherited IRAs. Some differences are positive. For instance, someone who inherits an IRA doesn’t pay a penalty for early withdrawal before age 59.5. On the negative… read more…
- How to Avoid Paying Taxes on Your Annuity
An annuity is an insurance company product that sometimes appeals to investors who are risk-averse or who have contributed the maximum to their retirement accounts. One advantage of an annuity is that there is no maximum contribution like 401(k)s or… read more…
- How to Avoid Capital Gains Taxes on a Land Sale
Real estate continues to be an appealing asset class for investors as property values rise. While many investors choose to invest in homes or apartment buildings, others prefer to invest in raw land. There are fewer maintenance costs with no… read more…
- CPA vs. Accountant: Which Do You Need?
Accountants and certified public accountants (CPAs) are two types of financial professionals serving both individuals and businesses. Even though their titles are often used interchangeably, they perform different services. CPAs can do everything accountants do, but accountants cannot do everything CPAs do. CPAs can also perform audits and are professionally licensed, but accountants are not.… read more…
- How to Avoid Capital Gains Tax on Real Estate
Home prices doubled over the past decade – and that could mean you owe some serious taxes if you are selling your home. After bottoming out at around $259,000 in 2011, the average sale price of a house has marched steadily upward to more than $500,000 in 2024. This type of growth often leads to… read more…
- How to Avoid Capital Gains Taxes
Capital gains taxes can take a major bite out of your investment earnings if you don’t manage your portfolio specifically for them. The strategies that allow you to minimize the capital gains tax include holding investments for the long term,… read more…
- 401(k) Inheritance Tax Rules for Estate Planning
Inheriting a 401(k) comes with some complex tax rules. When the estate plan includes workplace plans and individual retirement accounts (IRAs), they’re treated differently than real estate or other assets. If you anticipate inheriting a 401(k) from a parent, a spouse, or someone else, it’s important to understand the tax liability associated with making withdrawals… read more…
- Inside Biden’s Capital Gains Tax Plan
President Joe Biden proposed doubling capital gains taxes for investors making over $1 million to fund his $1.8 trillion American Families Plan. This could compel some high-income investors to sell off assets before the tax hike takes effect. Others will… read more…
- Estate Tax vs. Inheritance Tax: Key Differences
Losing a loved one is a tragedy that requires space to grieve, and the last thing a family needs at that time is to deal with unexpected costs. However, there are federal and state-level taxes that need to be handled… read more…
- How to Avoid Paying Taxes on a Savings Bond
Savings bonds can be a safe way to save money for the long term while earning interest. You might use savings bonds to help pay for your child’s college, for example, or to set aside money for your grandchildren. Once… read more…
- Reducing Capital Gains Tax on a Rental Property
Receiving regular rental income can help you grow wealth in the long term and diversify your income streams. . However, income earned from a rental property isn’t tax-free money; you do have to pay the IRS taxes on it. Capital gains tax can also apply when you sell a rental property. To avoid these taxes… read more…
- IRS Form 5329: Reporting Taxes on Retirement Plans
When filing your taxes, it’s important to make sure you’re reporting all of your income correctly. That includes making note of early distributions from qualified retirement plans or other tax-favored accounts that may be subject to a 10% early withdrawal… read more…
- What Is Adjusted Gross Income (AGI), and How Do You Calculate It?
Adjusted gross income, or AGI, is extremely important for filing your annual income taxes. More specifically, it appears on your Form 1040 and helps determine which deductions and credits you are eligible for. Based on the amount of your AGI,… read more…
- What Is the Tax Rate on Stock Options?
For many employees in America, especially those at tech companies and other startups, stock options are a part of compensation packages. While the right to buy stock in a company at a set price is an attractive form of compensation,… read more…
- What Are the Tax Benefits of an LLC?
One of the most popular ways to organize a business is as a limited liability company, otherwise known as an LLC. The true advantage of an LLC over other business entity types comes in the form of tax benefits. LLCs,… read more…
- All About Tax-Loss Harvesting for Investors
Tax-loss harvesting is a way to use investment losses to lower your taxes on any capital gains you have in a year. If you’ve only invested in your future by contributing to a retirement account, tax-loss harvesting won’t likely help… read more…
- How the Trump Tax Plan Will Affect You
President Trump signed the Tax Cuts and Jobs Act into law in December 2017. This bill largely didn’t affect individual income taxes until the 2018 tax year, which you filed in early 2019. How exactly the Trump tax plan affects you depends… read more…
- What Is a Net Operating Loss (NOL)?
Many businesses don’t make any money, particularly during their first year of operation. When this happens, the IRS provides business owners with some tax relief in the form of something called a net operating loss (NOL). What follows is a… read more…
- All About Taxes on Pensions
If you have a pension, consider yourself fortunate. Traditional defined benefit plans, such as pensions, have become increasingly rare, often replaced by defined contribution plans like 401(k)s. However, accessing your pension income in retirement isn’t entirely tax-free – some or all of it may be subject to taxation. Working with a financial advisor can help… read more…
- What to Know About Part-Year Tax Withholding
If you’ve ever taken a look at your pay stubs you’ve probably noticed your employer’s tax withholding. Based on the W-4 form that you submit when you start a new job or your tax situation changes, your employer will withhold… read more…
- How Turning a Hobby Into a Business Affects Your Taxes
Having a hobby can be a great way to unwind, but a hobby can take on an entirely new dimension if you can make money while you’re working at it. That’s because any money your side hustle brings in may be considered taxable… read more…
- What Are the Different Types of Taxes?
Every April we have to go through filing federal income taxes, on our own or with the help of a tax accountant. Unless you happen to be a tax policy wonk, you probably don’t dwell too much on the theory… read more…