Latest News

Year-End Retirement Planning

A major feature of the TCJA is the reduction of income tax rates owed by individuals. For example, married couples filing jointly for 2018 may have taxable income up to $77,400 and remain in the 12% bracket, up to $165,000 and stay in the 22% bracket, and up to $315,000 and stay in the 24% bracket. For single filers, the taxable income numbers are exactly 50% of those in the last sentence. Keep in mind that the... Read More

Year-End Tax Planning for Investors

This year has been a roller coaster for investors, with good months followed by steep pullbacks. At this point, you may have taken some gains and losses in your taxable accounts during 2018; you also may have unrealized losses as well as gains. The classic strategy is to tabulate all of your capital gain and loss transactions for the year to date to see the net result so far. If you own mutual funds in taxable... Read More

Charitable Donations and Your Tax Return

More taxpayers are likely to take the standard deduction for 2018, rather than claim itemized deductions. Therefore, they’ll lose the tax benefits from their charitable contributions. Example 1: Art and Beth Dean are in their 40s and have paid off their home mortgage. They seldom have substantial unreimbursed medical expenses and typically contribute around $7,000 a year to charity. In prior years, they... Read More

Standard or Itemized Deduction - Which Shall it Be?

Under the new, as well as prior, tax law, taxpayers can either take a standard deduction or itemize deductions on Schedule A of IRS Form 1040. Typically, tax preparation involves comparing the total of itemized deductions with the standard deduction and choosing the larger amount. Most people have used the standard deduction and that probably will continue to be true, even more so for 2018 returns. If you plan... Read More

Qualified Tax Opportunity Zones

On October 22, 2018, the IRS issued proposed regulations relating to the deferral of gain under IRC §1400Z-2 for investments in qualified opportunity zones (“QOZ”). The provision allows taxpayers to elect to defer capital gains that are invested in a qualified opportunity fund (“QOF”) within 180 days after the sale or exchange triggering the gain. Qualified Opportunity Funds must hold... Read More

October/November Dates to Remember

October 15 Individuals. If you have an automatic six-month extension to file your income tax return for 2017, file Form 1040, 1040A, or 1040EZ and pay any tax, interest, and penalties due. Employers. For Social Security, Medicare, withheld income tax, and nonpayroll withholding, deposit the tax for payments in September if the monthly rule applies. Corporations. File a 2017 calendar-year income tax... Read More

Rising Interest Rates Worry Fixed Income Investors

Just as volatility and high prices might make some investors leery of stocks now (see “Buy-write strategies for a flat market”), the threat of rising interest rates may worry fixed income investors. Rising rates tend to depress bond prices. Again, a time-tested strategy might be useful in the current environment. You could put together a bond ladder to hold the fixed income portion of your asset... Read More

Fluctuating Stock Market Heralds Covered Calls

Up one month, down the next. The stock market this year has offered lots of excitement. As of this writing, broad market indexes have provided little sustenance for bulls or bears, with results not far from early 2018. One strategy that may be appealing in a relatively flat stock market is to use covered calls. Even if the actual stock you own goes nowhere, trading in options may deliver meaningful investment... Read More

Sales Tax and the Out of State Buyer

If your company makes sales to out-of-state buyers, do you need to collect state sales tax? Until recently, Supreme Court decisions from the 20th century declared that would not necessarily be the case. Example 1: ABC Corp., based in Alabama, sends a catalogue to customers and prospects. A consumer who lives in Wyoming places a $100 order. Assume that ABC has neither employees nor property in Wyoming. ABC... Read More