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Tax Planning Archives | Page 3 of 5 | Wealthspire | Page: 3

year-end tax

2018 Year-End Tax Conversation with Howard Sontag & Nicole Hart

By and Blog
During our annual year-end tax conversation, Howard Sontag, Chairman, and Nicole Hart, Senior Vice President of Trusts & Estates, answer a number of your most pressing questions including: Do I need to call you to take my year-end losses? How do I know if I took my RMD? Are my taxes going to be higher this year because of tax reform? I’m thinking about setting up a retirement plan for my business – what do I need to know? When do I need to make my charitable contributions by? Do I still need to gift to my kids if I’m…
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investments taxed

Do You Know How Your Investments are Taxed?

By Blog
Investors generally pay close attention to portfolio allocation, performance, strategy and even fees.  The impact of taxes, however, is often overlooked when evaluating an investment portfolio. This blog post will highlight various ways that investors are taxed, including the capital gains tax, capital gain distributions, net investment income tax, and what the difference is between qualified and non-qualified dividends. There are a few quiz questions along the way so pay attention! Capital Gains and Losses When you sell an asset for more than you paid to acquire it (i.e. your cost basis), the government shares in your appreciation. An asset…
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QBI

Qualified Business Income (QBI)

By and Blog
Deduction May Create New Planning Strategies for Some Business Owners The Tax Cuts and Jobs Act of 2017 introduced a new 20% tax deduction focused on pass-through businesses. As tax accountants pore through the Internal Revenue Service’s recently released 184-plus pages of guidance on the so-called Section 199a deduction for “qualified business income” (QBI), many business owners are wondering whether they will qualify. While everyone’s circumstances are different, and we encourage consultation with a tax advisor, the Act created an opening for several planning opportunities to potentially reduce tax bills for owners of such businesses. First, a little background. Qualified…
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charitable gifts

The Benefits of “Bunching” Charitable Gifts Under 2018 Tax Law

By Blog
Mr. and Mrs. Smith are charitably inclined.  They typically donate about $10,000 per year by way of a donor-advised fund.   Each year the Smiths select about $10,000 of appreciated securities (those with long-term capital gains) from within their investment portfolio, which are subsequently moved in-kind (without liquidation) into their Donor-Advised Fund.   They receive an immediate tax deduction equal to the full fair market value of these positions, and they pay no capital gains tax on the sale of those positions once in the donor-advised account.  The Smiths subsequently recommend that the charitable custodian issue about $8,000 worth of grants to…
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tax law changes

What You Need to Know About the New AMT

By Blog
The AMT remains in-force following the Tax Cuts and Jobs Act (TCJA), but it will impact far fewer taxpayers beginning this year. This is welcome news for many households that are concerned about the $10,000 cap on state and local tax deductions. The alternative minimum tax was enacted in 1969 as a parallel tax system to ensure a small group of high income earners paid some federal tax. The idea was to disallow certain types of tax-free income that millionaires were privy too. However, by last year, approximately five million households were affected – many of them had annual incomes…
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tax law changes

Tax Reform Brings Changes to Popular Deductions

By Blog
Mortgage Interest and Charitable Contributions With 2017 taxes complete for most families, we can turn our attention to the changes in store for 2018. The Tax Cuts and Jobs Act of 2017, passed into law in December, represents significant new changes that will affect many families. We plan to explore a number of issues related to this new tax law in future blogs.  Here I’d like to look at two significant changes to the deductions many people take on their tax return – mortgage interest and charitable gifts.  Please note that though we as a firm have a policy to…
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early 401(k) withdrawals

Early 401(k) Withdrawals: What You Need to Know

By Blog
401(k) plans are designated as tax-efficient retirement savings vehicles, with the idea that funds contributed will be used only to fund retirement. Following the rules of your 401(k) means you can enjoy pre-tax contributions and tax-deferred growth that maximize your assets later in life. That said, instances can come up where you may wonder how easily you could access those funds in a pinch. Individuals thinking about early withdrawals from their 401(k) accounts should know that this process can severely limit the growth of your portfolio and subjects you to penalties. Here we examine what those penalties are and under…
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tax law changes

After Tax Reform: What Will Your 1040 Look Like?

By and Blog
One of the most extensive tax code overhauls in decades is now law. Below is a brief outline of some of the major changes you may see on your Form 1040 for 2018 due to this tax reform (remember these changes have almost no impact on your 2017 return): Income Tax Rates and Brackets: The number of income tax brackets remains steady at seven, although some income shifted into lower brackets. Click here for a breakdown of the new brackets. Below are a few examples of how the tax reform would impact your 2018 return: For example, for a married…
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