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

taxation benefits

Taxation of Benefits When States of Employment and Domicile Differ

By Blog
For many, working in one state and living in another is a common situation. For example, a 2013 report cited by the New York Times estimates that nearly 400,000 people commute from New Jersey to New York each day. For those commuters, filing an income tax return in both states each year is the norm. The typical process is to withhold and pay tax in the state where you work while you also file in your resident state and claim a credit for taxes paid to the non-resident state. For those who cross state lines to work, there is also…
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tax law changes

Trump and Year-End Income Tax Planning

By Blog
With respect to individual income taxes, President-Elect Donald Trump has proposed to compress and lower tax rates, as well as limit itemized deductions. His proposal would reduce individual tax brackets from seven to three for ordinary income and amend the capital gains brackets accordingly.  For joint filers, this means that (i) income under $75,000 would be subject to a 0% capital gains rate and a 12% ordinary income rate, (ii) income between $75,000 and $225,000 would be subject to a 15% capital gains rate and a 25% ordinary income rate, and (iii) income over $225,000 would be subject to a…
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tax-loss harvesting

A Closer Look at Tax-Loss Harvesting

By Blog
Tax-loss harvesting (TLH) is an important practice that can improve the after-tax returns of investors’ portfolios.  Below, we discuss the benefits, best practices, and limitations of TLH. What is it? Tax-loss harvesting is the process of selling a security at a loss, then using the proceeds from that sale to purchase a similar security.  The realized loss can now be used to offset existing or future realized gains as well as a limited amount of what is considered “ordinary income” for IRS purposes.  The concept behind TLH is to generate a tax deduction without negatively impacting the returns of your…
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Understanding the Proposed Regulations for FLPs and Family Businesses

By and Blog
If you’re a family business owner or you created a family limited partnership (FLP), you may be wondering about the proposed Treasury Regulations that were released earlier this month.  You may have even tried to read an article or two on the topic.  If you’re wondering whether you should care about the proposed regulations and why, please read on. Background Valuation discounts for transfers of business interests between family members can be a powerful gift and estate tax planning tool.  Most discounts relevant to this discussion can be put into two general classifications: (1) lack of control, and (2) lack…
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