Taxes

January 23, 2025Duties and tariffs are different types of fees imposed on goods entering a country to generate revenue for the government or protect domestic industries. Duties are based on specific product characteristics and are generally permanent and set by international trade agreements. Tariffs, on the other hand, cover a broader category of taxes or restrictions on… read more…

January 21, 2025Tariffs are taxes on imported goods. They can affect product costs and company profits in international trade. Knowing which goods are tariffed could help you anticipate price changes, assess investment options, or decide on industry support. Financial advisors can also work with you to identify such goods and their implications. How Tariffs Work Governments impose… read more…

January 21, 2025Tariffs can be used by government policymakers to protect domestic industries from competition and correct trade imbalances, but they also influence exchange rates and currencies in ways that affect business profits and investment decisions. For example, if adding or raising tariffs  reduces imports from a particular country, it can cause that country’s currency to be… read more…

January 21, 2025Derived from the Latin term meaning “according to value,” an ad valorem tariff is a tax imposed on goods based on their value rather than their quantity or weight. This type of tariff is commonly used by governments to regulate imports, protect domestic industries and generate revenue. A financial advisor can help you understand how… read more…

January 16, 2025Dividing tax debt during a divorce depends on when the debt was incurred, state laws and other factors. Responsibility for back taxes may be shared or assigned to one spouse, often based on whether the debt arose before or during the marriage. However, IRS rules may not align with a divorce court’s decision. A financial… read more…

January 13, 2025A tariff is a tax imposed on imported goods, typically collected by customs authorities at the point of entry. While the tariff is paid directly by the importer bringing goods into the country, its financial burden often gets passed down the supply chain. This can result in higher prices for wholesalers, retailers and, ultimately, consumers.… read more…

January 13, 2025Tariffs, such as those implemented during the Trump administration, can influence everyday expenses by raising the cost of goods subject to import taxes. And this can mean higher prices on items like electronics, clothing and food, as businesses often pass their increased costs onto consumers. These additional expenses could impact household budgets, especially for families… read more…

January 8, 2025Tariff and non-tariff barriers play important roles in shaping trade policies and economic relationships between countries. While both serve as tools for regulating imports and exports, they differ significantly in their application and impact. Tariffs are essentially taxes imposed on imported goods, designed to make foreign products more expensive and less competitive when compared with… read more…

January 8, 2025Historically, you could deduct some financial advisor and tax preparation fees. Under the current tax code, that is no longer the case. For example, say that you paid $4,500 this year in fees to your financial advisor. There are no specific tax breaks for this spending for the 2024 tax year. However, the Tax Cuts… read more…

January 6, 2025Money likes certainty, and right now there’s ambiguity ahead. In 2017, the Trump Administration passed one of the largest tax cuts in U.S. history. While this was a complicated law with many moving pieces, it focused broadly on three main areas: reducing corporate taxes, reducing high-income individual taxes, and doubling the standard deduction for individuals.… read more…

January 3, 2025Tariffs are taxes on imported goods that affect trade between countries. They are often used to protect local industries or raise revenue. Common targets for tariffs include agricultural products, manufactured goods and raw materials. Tariffs can also be used as tools in trade negotiations to influence market access and trade agreements. A financial advisor can… read more…

January 1, 2025Tariffs and taxes both generate government revenue but serve different purposes. Tariffs are fees on imported or exported goods, often used to influence trade by making foreign products less competitive. Taxes are financial charges on individuals or businesses to fund government activities. Knowing how each can affect the economy and your bottom line could help… read more…

December 10, 2024A protective tariff is a type of tax imposed on imported goods to make them more expensive compared to domestic products. Governments use protective tariffs to shield local industries from foreign competition, often with the aim of encouraging the growth of domestic businesses. By increasing the price of imports, protective tariffs make locally produced goods… read more…

December 10, 2024A Reverse Morris Trust is a financial strategy that allows a company to divest certain assets while minimizing tax implications. This arrangement involves merging a subsidiary with another company, enabling the original firm to distribute assets without triggering taxes on gains. Often used by large corporations aiming to offload underperforming or non-core assets, a Reverse… read more…

December 5, 2024Back taxes refer to unpaid taxes that remain outstanding from previous years, either due to missed payments, underreporting of income or adjustments in tax filings after an audit. These unpaid balances can accrue penalties and interest over time, which may significantly increase the amount owed. Individuals or businesses with back taxes may face consequences from… read more…

December 5, 2024IRS forms W-8 and W-9 serve distinct purposes in the tax system and are used by different groups to fulfill their tax obligations. A W-8 form is typically required from non-U.S. individuals or businesses to certify their foreign status and can enable filers to claim full or partial exemption from certain U.S. withholding taxes. In… read more…

December 5, 2024The W-8BEN form is an IRS document required for non-U.S. individuals who receive interest, dividends or other income from U.S. sources. The form, also known as the Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting, enables nonresident aliens to confirm their foreign status to the tax collecting agency. It… read more…

December 5, 2024Itemized deductions and the standard deduction are two options that taxpayers can choose when filing their tax returns. The choice affects how much taxable income is reduced, potentially influencing the amount of taxes owed. The standard deduction is a fixed dollar amount that varies based on factors like filing status, while itemized deductions allow for… read more…

November 18, 2024The kiddie tax is a set of tax rules designed to prevent parents from reducing their tax burden by shifting investment income to their children. It applies to children under the age of 18, or dependent full-time students under 24, who have unearned income from investments, such as dividends or capital gains. The tax rate… read more…

November 14, 2024Foreign individuals use IRS Form W-8BEN to certify their non-U.S. status and claim benefits such as reduced withholding rates that may be available because of an income tax treaty. The form helps determine how much tax will be withheld on income from U.S. sources. To fill out a W-8BEN form, you’ll need basic information like… read more…

November 13, 2024Profits from a home sale are subject to capital gains taxes. This sale will count toward your total capital gains for the year, and will be taxed at the normal rates of either 0%, 15% or 20%.  That said, when it comes to home sales, the IRS allows you to exempt a portion of the… read more…

November 8, 2024Currently, the top U.S. capital gains tax rate applied to assets held more a year is 20%. This is well below the world’s highest capital gains tax rate of 42% levied by Norway, but somewhat above the average of European countries. China’s maximum long-term capital gains tax on individuals is the same as the U.S… read more…

October 31, 2024Form 8949 is used to report the sale or exchange of capital assets, such as stocks, real estate, or cryptocurrencies to the IRS. It details the purchase and sale dates for each transaction, as well as the proceeds, cost basis and any adjustments. This information is then transferred to Schedule D, where gains or losses… read more…

October 27, 2024A liquidating dividend, unlike regular dividends that are paid from a company’s profits, is distributed from the company’s capital base during the process of winding down operations or liquidating assets. This dividend returns part of the investor’s original investment rather than a portion of earnings. Liquidating dividends are taxed differently from regular dividends, as they… read more…

October 27, 2024Hiring a nanny can provide much-needed support for families, but it also comes with specific financial responsibilities. One of those responsibilities is the “nanny tax,” a federal requirement that applies to families who employ household workers, including nannies, caregivers and housekeepers. As of 2024, if you pay your household worker $2,700 or more in a… read more…