Taxes

March 14, 2022As with all investment types, you’ll have to pay taxes on your mutual fund returns. Depending on when you bought or sold the mutual fund, you will have to pay capital gains taxes or ordinary income taxes. If you didn’t sell the fund, you’ll still need to pay taxes on any dividends paid out to you.… read more…

March 10, 2022A home equity loan is a loan using your house as collateral — a somewhat risky move, but useful in some circumstances. Furthermore, you may be able to deduct the interest you pay on a home equity loan as long as you meet some requirements. Taxpayers who itemize deductions on their returns, spend the proceeds… read more…

March 2, 2022Capital 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…

February 28, 2022If you gain wealth of any kind, you must pay taxes on it. This includes physical property, money and debt forgiveness. Likewise, winning a bet counts as gaining wealth, which means you must report it to the tax authorities. In 2018, a Supreme Court ruling struck down federal legislation that banned the practice nationwide. Today, the… read more…

February 28, 2022Current 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…

February 25, 2022A 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…

February 25, 2022The 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…

February 23, 2022An 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…

February 23, 2022A home equity line of credit (HELOC) and a home equity loan both free up cash by accessing the equity you have in your home. In both cases, the interest charges may be tax-deductible. The HELOC is a line of credit,… read more…

February 17, 2022Taxpayers preparing their federal returns for 2023 will be able to reduce what they owe by taking advantage of some significant credits, deductions and other tax breaks. Here are some of the most popular tax breaks you can potentially use… read more…

February 17, 2022Most people use the terms real estate taxes and property taxes interchangeably. However, while both terms cover taxes paid on real estate, property taxes include other types of assets as well. Let’s compare the differences between real estate tax vs. property tax, break down how they’re calculated and explain when they qualify for a tax… read more…

February 16, 2022Real 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…

February 16, 2022An inter vivos gift occurs when you give someone assets without receiving anything in return. To be considered an inter vivos gift, you must give them this property while alive. If you give them this property after you die, it is considered a testamentary or post-mortem transfer. Let’s break down key differences and what you… read more…

February 16, 2022Accountants and certified public accountants (CPAs) are two types of financial professionals that both individuals and businesses may need. Even though their titles are often used interchangeably, they perform different services. CPAs can do everything accountants do, but accountants can’t do everything CPAs do. CPAs can perform audits while accountants cannot. CPAs are professionally licensed, but… read more…

February 16, 2022If you own a home, you have paid an ad valorem tax. If you own a car, same thing. In fact, if you’ve ever bought anything in the United States, you have paid an ad valorem tax. These taxes are based on the value of some underlying asset. They are a very common form of… read more…

February 14, 2022IRS Form 6251, titled Alternative Minimum Tax—Individuals, determines how much alternative minimum tax (AMT) you could owe. In order for wealthy individuals to pay their fair share of income tax, Congress mandated an AMT in 1969. You have to pay the AMT if you report taxable income greater than certain income threshold exclusions. If this… read more…

February 14, 2022The alternative minimum tax (AMT) was created to close loopholes and ensure that all U.S. taxpayers pay their fair share of taxes. When you pay an AMT, some or all of that additional tax is for future income that is being taxed due to differences in the rules. For those payments, a credit is issued… read more…

February 9, 2022Privacy advocates can breathe at least a little bit easier: the IRS has backtracked its decision to require all IRS website users to register with third-party identification platform ID.me. Originally announced in November 2021 to take effect the next year,… read more…

February 3, 2022Home 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…

February 2, 2022The Earned Income Tax Credit and the Child Tax Credit are both programs designed to help alleviate poverty, but there are key differences. The EITC is a credit available to employed, low-income households. It is intended to boost the effective income of people who are employed. The CTC is a credit available to employed households with children. This… read more…

January 11, 2022On Monday, Jan. 10, the Treasury Department announced that the IRS is facing significant challenges this year due to budget concerns and issues caused by the COVID-19 pandemic. Officials are warning that many taxpayers could see significant delays in receiving their tax refunds this year. There are millions of tax returns that the agency has… read more…

December 17, 2021In addition to paying sales tax on the things you buy, you may also be required to pay taxes on its perceived fair market value later on. These personal and business taxes are assessed on certain tangible personal property items,… read more…

December 7, 2021If you are an employee of a business, you are required by the Internal Revenue Service (IRS) to fill out payroll tax forms that tell your employer how much tax to deduct from your income. This is the W-4. Your… read more…

December 2, 2021Capital 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…

December 1, 2021With the April 2023 tax deadline just around the corner, it’s not too soon to acquaint yourself with the relevant federal tax brackets. The Internal Revenue Service (IRS) adjusts them annually for changes in the cost of living. Those changes may impact… read more…