When it comes to taxes, the goal every year is to pay less. While we're still working under the Tax Cuts and Jobs Act (TCJA) changes at the federal level, we still see some changes in 2020. Federal income taxes, however, aren't the only taxes that millions of us must deal with each year. Forty-three states impose some sort of tax on income. Many local jurisdictions collect their portions, too. Thirty-five states have major tax changes taking effect on January 1, 2020.
Tax basis can be important when deciding whether to make gifts now or transfer property at your death. This is because the tax basis of the person receiving the property depends on whether the transfer is by gift or at death. This, in turn, affects the amount of taxable gain subject to income tax when the person sells the property. What is tax basis?
Congress finally decorated its Christmas tree early this morning (December 17). The ornaments were myriad tax breaks. Or, in some cases, elimination of taxes. With Dec. 25 bearing down and special interest groups sending more requests to Capitol Hill than kiddos' letters to Santa, the House and Senate negotiators finally agreed on, among other things, what to do about those expired tax provisions popularly known as extenders. They OK'ed a handful of them and plan to tack them onto government fiscal year funding legislation that must become law by Friday, Dec. 20, to avert shutdown of federal offices.
(Ed. Note – written for financial advisors)
Deadlines are rapidly approaching. As 2019 comes to an end, so does the window of opportunity to take advantage of certain tax and financial planning strategies. To help advisors and their clients be best positioned come Tax Day 2020, CPA financial planners with the American Institute of CPAs (AICPA)—the world’s largest member association representing the CPA profession—offer the following 2019 year-end tips. These 16 tips can help your clients improve their financial situations, support the lives they want to live and ensure their loved ones are provided for.
October is here and I've got to say that although it's still early, the month so far is disappointing. Here in Central Texas, by now we're usually enjoying daytime temperatures in the 80s, with overnight lows dropping into the 60s. That typically means our windows are open 24/7 to get full enjoyment of autumn weather. Not in 2019. We're at least 10 degrees higher both days and nights. One thing, however, that is certain every October is the mid-month tax deadline. Oct. 15 is, of course, the day when procrastinators must finally send in their prior year's tax return. It's also the due date for some other important, though less wide-ranging, tax-related moves. Here's a look at four tax tasks to take care of on or before Oct. 15.
The millions of taxpayers who hold wage-paying jobs where income taxes are withheld from their checks obviously will benefit from the Internal Revenue Service new tax withholding estimator. But what if you don't have a job where there's withholding? That's the case for millions of individuals who are self-employed. The work freedom of being your own boss comes with some new tax responsibilities.
New tests can detect dementia years before any outward signs appear. Early brain changes due to Alzheimer’s disease may soon be detected with a simple blood draw in your doctor’s office, according to researchers. Doctors have been hoping for such a test for years — one that providers can administer in the office at a reasonable cost. They have been searching for an alternative to the $4,000 PET brain scan currently in use.
Workers who thought pensions would fund their retirements are getting an unwelcome surprise as Uncle Sam looks the other way. Having a pension used to be the retirement gold standard. A defined benefit plan meant workers could count on payments for as long as they lived, without ever worrying the money would run out. But all that’s changed, and the government says it’s OK.
It's November. You know what that means. Year-end tax move time. If you don't get tax task proactive now, all the other important non-tax stuff that demands your attention this time of year will take over and you'll miss out making some tax-smart tax actions. Here are 10 tax things to consider and, wherever applicable, complete ASAP. Then you can get back to your holiday planning.
Here are 10 things to consider as you weigh potential tax moves between now and the end of the year.
A recent survey found that more than half of retirees have retirement planning regrets. Unfortunately, many of these retirees had to cut back on their lifestyles to compensate for financial shortfalls. Considering their most common regrets may help you avoid making the same mistakes.
When it comes to gifting assets to rising generations, many families of wealth are rightfully concerned about the potential tax impact. How and when should they pass down wealth to ensure that the greatest amount possible gets transferred to their heirs? Here are some underused and often misunderstood strategies for gifting assets and potentially reducing the tax consequences.
The economy may be about the only human creation that works better in practice than in theory. Still, economists are busy churning out theories to explain the behavior of markets and investors. Advisors may occasionally find some of these theories useful in helping clients understand why the economy behaves in a certain way. Take this quiz to test your understanding of 12 economic theories, both popular and obscure. If you get half right, count yourself an economic theorist of the first order.
Influencers, celebrities and other people with strong online followings can be, well, influential. When considering whether you want to buy something or use a service – especially when you’re buying online – you might look at a person’s or company’s social media. A bigger following might mean something to you, maybe telling you something about their legitimacy or how good their product or service is. A company called Devumi knew that and sold fake followers to help people and organizations gain strong “followings.”