If your child has a job this summer, encourage him or her to set up an IRA. The amount that can be contributed is $5,500 or the child’s earnings, whichever is less. If you wish, you can even provide the cash for the IRA and let your child spend his or her earnings. Roth IRAs are generally a smarter choice...
Tags: IRA accounts
Category: Taxes
Ask the typical summer bride and groom what’s included in the wedding plans, and they probably won’t mention a thorough tax review. Yet, the tax and financial aspects of getting married are not to be taken lightly. Consider the following issues: * Tax penalties. Marriage causes many tax regulations to take effect retroactively; that is, if you are married as...
Tags: Wedding tax planning
Category: Taxes
The bill, known as the America Gives More Act of 2014, passed by a vote of 277 to 130, despite complaints from some lawmakers that the loss in tax revenue was not offset. Among other items, the Bill would make permanent the IRA charitable rollover and enhanced deductions for the donations of food inventory and conservation easements, all of which...
Tags: Charitable Deductions
Category: Taxes
The IRS has just issued a new “Taxpayer Bill of Rights” that you should be aware of. The Rights are divided into ten main categories. According to this “cornerstone” document you have The Right: * to be informed * to quality service * to pay no more than the correct amount of tax * to challenge the IRS’s position and...
Tags: Taxpayer Bill of Rights
Category: Taxes
Imagine this scenario. Your wealthy Uncle John is something of an art collector, buying paintings and sculptures from promising young artists. When he retires, he moves into a small condo in a retirement community and has to downsize his art collection. He gives away much of his art to family members, and you receive an abstract painting. He tells you...
Tags: capital gainsgifted items
Category: Taxes
Special tax benefits apply to members of the U. S. Armed Forces. Here are some of those benefits: 1. Deadline extensions – Some military can get extensions on some tax deadlines, especially those who serve in a combat zone. 2. Combat Pay – Certain combat pay is not taxable. Service in support of a combat zone may also qualify. 3....
Tags: Armed Forces
Category: Taxes
If you itemize tax deductions on your income tax return, you can deduct the mortgage interest and property taxes paid for your vacation home or secondary residence. A boat or RV can qualify as a vacation home or secondary residence if it has sleeping quarters, cooking facilities, and a bathroom. If a vacation home also serves as a part-time rental,...
Tags: Secondary residences
Category: Taxes
When market interest rates dip, it may be a good time to consider refinancing your existing home loan. But simply comparing interest rates is not enough. Here are some other factors to consider before you refinance. * Compare apples to apples. Always request a good-faith estimate from any lender. This report should disclose all the fees and closing costs, such...
Tags: refinancing
Category: Taxes
Many small business owners share one problem, especially in their early days. It’s being over-reliant on a single customer or supplier for much of their business. If you’re in that position, your business is operating with higher risk. Just as with investments, you don’t want all your eggs in one basket. Your goal should be a well-diversified portfolio of customers...
Tags: business dependencies
Category: Business