- Are Home Improvements Tax Deductible?
If you’ve spent a sizable amount of money improving your residence, you may understandably be looking for ways to offset those costs and find yourself wondering if your home improvements are tax deductible. Alas, in most cases, the answer is… read more…
- Guide to Tax Deductions Related to Insurance
Claiming tax deductions you’re eligible for is an effective way to reduce your tax burden. But identifying all the deductions available to you can be challenging and you can’t claim deductions if you don’t know they exist. You may be… read more…
- What Are the Tax Benefits of Marriage?
While persevering in sickness and health is a familiar concept during a wedding, you’ll rarely hear about tax breaks at the altar. However, married couples can take advantage of a slew of tax benefits, especially when they file jointly. Here… read more…
- 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 Is Tax Debt?
The IRS has many different payment options for taxpayers who owe money. The important thing is to reach out and arrange a payment plan. As long as you address it, tax debt is almost always manageable. If you ignore it,… read more…
- Is Margin Interest Tax Deductible?
The world of investing is vast, exciting and often expensive for individual traders. Occasionally, you’ll encounter an investment opportunity you don’t want to pass up but can’t quite afford. Fortunately, you can borrow the funds necessary from your broker to… read more…
- How to Avoid Paying Taxes on Side Jobs
The gig economy pads the budgets of millions of Americans — but there are tax implications from taking a side job. Fortunately, you can reduce the taxes on your side jobs, depending on your situation. For help figuring out how… read more…
- How Much Income From Interest Is Taxable?
When you earn interest income on your investments or other financial endeavors, then you’ll likely need to pay taxes on all or part of that income. Earned interest is considered the same as any other ordinary income and must be… read more…
- Do You Net Long-Term Capital Gains and Losses?
Selling investments for more than what you paid for them could lead to a tidy profit. It could also trigger capital gains tax, potentially resulting in a larger tax bill. The good news is that you may be able to… read more…
- Do IRA Contributions Lower Your AGI?
The link between IRA contributions and your adjusted gross income (AGI) can get complicated because not all contributions to IRAs lower your AGI. Generally, this is one of those situations where you’ll be pleased to file a tax return with… read more…
- Effective vs. Marginal Tax Rate
Sitting down to file taxes can sometimes bring an unpleasant surprise of taxes owed or a pleasant relief of a hefty refund. After filing taxes for years, you might wonder how the government calculates your taxes. Understanding effective and marginal… 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…
- Do You Have to Report Capital Losses?
Even the savviest investors pick assets that turn out to be duds. But fortunately, your capital losses can become tax deductions. While you don’t have to sell an asset whose value has nosedived, ridding your portfolio of dead weight can… read more…
- This Hidden U.S. Tax Shelter Is Not Just for the Global Elite – Want In?
Normally when you hear the word tax haven, the typical places spring to mind. The Cayman Islands, Switzerland, Panama and the Bahamas are all tax havens, but over the course of the past decade South Dakota has joined their ranks… read more…
- Definition of Net Unrealized Appreciation (NUA)
As part of your employee benefits package, you may have the option to own stock in the company you work for. You can own company shares inside your 401(k) but once you start taking distributions, those investments would be subject… read more…
- Can Capital Losses Offset Dividend Income?
Capital losses realized when selling securities for less than you paid can be used to reduce income received from dividend-paying stocks — but only up to a point. The IRS will let you use up to $3,000 in net capital… read more…
- What Is a Write-Off and How Do You Take One?
A tax write-off is how businesses account for expenses, losses and liabilities on their taxes. Write-offs are a specialized form of tax deduction. When a business spends money on equipment or operating expenses, it can deduct that spending from its taxes.… read more…
- When Is Debt Cancellation Tax-Free?
Usually, if you have a debt canceled, you will owe taxes on the amount of the canceled debt. The Internal Revenue Service does not consider debt as income unless the debt is canceled. Then the canceled debt is regarded as… read more…
- How to Deduct Stock Losses on Your Taxes
Capital gains and capital losses both have tax implications. When you sell stocks for a profit, you owe taxes on those gains. These taxes are calculated based on capital gains rates. However, when it comes to investments, the IRS taxes… read more…
- Dependent Tax Deduction Rules
The American Rescue Plan boosted 2021 tax returns for millions of working families. However, the 2022 tax year will be a return to the norm, and dependent tax deduction rules are no exception. A dependent tax deduction can lower your… read more…
- LLC Tax Rates and Rules
If you’re self-employed or own a small business, chances are high that your business is an LLC or could benefit from becoming one. It’s not always straightforward how an LLC works and what it means for you, however. Here we’ll… read more…
- Qualified Small Business Stock (QSBS) Tax Rules
Investors holding qualified small business stock (QSBS) may be confused about what the tax rules are but they should know that they can qualify for tax benefits. This can encourage small business investment while providing a benefit for investors. There… read more…
- Do You Get Tax Forms for Your Roth IRA?
As a contributor to a Roth IRA, you’re likely looking forward to a retirement chock full of tax-free income from your account. However, paying income taxes now and eliminating them later doesn’t mean you won’t submit and receive tax forms… read more…
- Are Education Expenses Tax Deductible?
The tax code has changed a lot recently, and there may be some confusion among filers about whether or not education expenses are tax-deductible. Though the standard tuition and fees deduction expired at the end of 2020, you may be… read more…