Tax-Saving Cash Flow Solution for Seniors with Appreciated Homes
Many older people own hugely appreciated homes but are short of cash. A side effect of large appreciation is the fact that selling the property to raise cash will trigger a gain well in excess of the federal home sale gain exclusion (up to $500,000 for joint-filing couples and up to $250,000 for unmarried individuals)….
Consider Tax Issues When Valuing a Business for Divorce
Let’s say divorcing spouses own part of the stock in a closely held corporation. This may be one of their biggest marital assets, and often one spouse decides to buy out the other party’s shares by transferring some assets in exchange for the stock. Before jumping headfirst into these transfers, it’s important to consider the…
Year-End Tax Planning Moves for Small Businesses
It’s hard to believe 2019 is almost over! It’s been a busy year in many sectors, often forcing small business owners to put tax planning on the back burner while they’ve tended to daily business operations. But procrastinate no longer. Consider the following moves to lower your 2019 business tax bill before ringing in the…
Inheriting Money? Considerations for Handling It
After receiving an inheritance, you need to determine how to incorporate those assets, whether stocks, bonds, real estate or some other asset, into your finances. Consider these points during the process: Determine what you will receive and when. Inheritances typically don’t come in the form of one check. You’re likely to receive the inheritance in…
Year-End Strategies to Reduce Adjusted Gross Income
Reducing your current-year adjusted gross income (AGI) is usually a tax-smart idea. Here are ten ways to reduce your AGI (and modified AGI) over the short and long run. Closeup on AGI AGI equals all taxable income items minus selected deductions for such items as deductible IRA and retirement plan contributions and alimony payments required…
One Option to Finance a Business Sale
Structured settlements are commonly associated with the payment of personal injury damages because of their advantageous tax-free treatment, but some business purchases and buyouts can also benefit from structured settlements using annuity payments from an insurance company. While payments from these non-personal injury cases are not tax-exempt, the recipient only owes taxes on the amount…
Claiming Your Parent as a Dependent
If you pay over half the cost of supporting a parent, he or she is considered your dependent for federal income tax purposes — which may qualify you to some significant tax breaks. Here are the details. New Credit for a Dependent Parent For 2018 through 2025, your dependent parent may qualify you for a…