Quizmaster Doug Hutchinson has come up with another great quiz that explores the effect of harvesting losses. Let’s see what the math has to say. Good luck! First, a definition of tax loss harvesting. Tax Loss Harvesting is the practice of selling a security that has experienced a loss. By realizing, or "harvesting" a loss, investors are able to offset taxes on gains. The sold security may be held in cash or replaced by a similar one (keeping in mind wash sale rules), to help maintain the optimal asset allocation. [+] Read More

Estate taxes are a hot-topic amongst both political parties and often big news when they are brought to the forefront of campaigns. While the parties battle back and forth, there are still some ways you can potentially reduce the impact of taxes on your estate. Using an estate planning checklist is a good place to start, as it helps you map out your estate planning strategy. Rather than take estate planning advice from just anyone, consider what you really want to do with your money and look for estate planning tips that are tailored to the plans, goals, and ideas you have. Here are five potential ways to lower your estate tax bill. [+] Read More

Check our our post: 3 Tips for Reducing Your Taxable Income in 2016. According to J.P. Morgan, the average American pays more in taxes than they do for food, clothing, and housing…combined. And, that only applies to income taxes! For investors, the cut often runs even deeper. Not only is your earned income reduced every year, but—J.P. Morgan also reveals that taxes on your investments can reduce an 8% annual return to as low as 5.2%.1 Click for larger view [+] Read More

This year giving a monetary gift to your spouse, favorite charity or individuals you care about could be one of the best moves you make this tax season. Taking advantage of the gift tax is a smart tax planning strategy if you are in search of ways to help those you care about and save money on your annual tax bill. There are a couple of things to keep in mind when utilizing the gift tax. [+] Read More

At the end of last year, 55 tax breaks1 and incentives known as “tax extenders” expired. Several of them were corporate (57%) and related to things such as research, experimentation, and energy use.2 But there are two in particular that we think could affect you if they’re not extended this year. We’re writing to make you aware of them as you develop your tax planning strategies for 2014 and beyond. 1) Deducting State Income vs. Local Sales Taxes This provision allows for taxpayers to choose between deducting state income taxes vs. state sales taxes. So, if you live in a state with a high income tax, like New York or California, you could opt to deduct your state income tax versus deducting sales taxes. The opposite would be true for a state like Florida or Texas, where there is no state income tax. In those cases, you may want to deduct state sales taxes on your return. [+] Read More

If you had a good investment year, perhaps you had to pay a chunk of taxes on capital gains, interest, and dividends earned. Taxes are taxes, but we’re writing to show you a few ways you might be able to get some of that money back. Here are four investment-related expenses that may be tax deductible for you: 1) Financial Advisor Fees These can include investment management fees paid to your money managers or financial advisors, and can also include paid-for services like subscriptions to newsletters. 2) IRA Custodial Fees For annual or maintenance fees associated with holding your IRA at a custodian. One key item to note: these fees may only be tax deductible if you pay them with cash from an account different than your IRA. [+] Read More

April 15 is fast approaching and the W-2s, 1099s, and other tax documents are starting to appear in your mailbox - it’s almost time to file. What’s more, with Congress having passed some tax law changes in 2013 - higher top marginal income tax rate (39.6%), higher capital gains rate (20%) for top earners, etc1… - there’s a possibility that your tax bill has increased from 2012. With that in mind, it could make sense to start preparing your taxes early in the event you might owe a bit more than you think. This way you’ll have additional time to decide how you want to pay. We hope the information below will help make the tax preparation experience a little better by reminding investors of a few ways they may be able to reduce their taxable income for 2013, while also offering a few pointers for thoughtful tax planning in 2014. Ways to Potentially Reduce Taxable Income for 2013 It’s too late to make tax deductible contributions to 401(k) plans or other employer-sponsored plans for the 2013 tax year. But, you might still have some alternatives—if you meet some eligibility requirements, you could potentially make a tax deductible contribution to a Traditional IRA, a SEP IRA, or a Health Savings Account, which would reduce the taxable income that you would report for the year. [+] Read More

Tax season is gearing up and there are various deadlines depending on your tax situation. The below report lists out important dates throughout 2014. It also contains useful 2014 tax planning tables and information for several items, including: Income tax rate schedules, alternative minimum tax (AMT), capital gains, losses, and dividends, education planning, retirement accounts, Social Security benefits, Medicare tax rates, health and long-term care, federal trust and estate income tax, estate, gift, and generation-skipping transfer tax, corporate income tax and municipal bond taxable-equivalent yields. Download the Full Report Here [+] Read More