Taxes are what you pay to the federal, state and local governments where you live. Different types of taxes include income taxes, capital gains tax, sales tax, estate tax and real estate taxes such as property tax. Learn how to bequest property and do transactions in a way that will help you pay less taxes and follow the law.
Three Reasons You May Need to Amend Your Tax Return
It’s not a great idea to amend tax returns needlessly. The IRS can only audit you for three years after you file a tax return. When you amend a return, however, you start that three-year clock running again. There may be things that you can no longer prove or that are too complicated to explain. [...]
3 Steps to Reduce Property Taxes
Are you paying too much in property taxes? Chances are your answer is yes. Well, there are three steps you can take to reduce your property taxes. Most homeowners feel overburdened by ever-rising property tax costs and want to take steps to reduce property taxes, though not every homeowner’s taxes are as oppressive as others. [...]
Do I Need to Pay the Alternative Minimum Tax?
Once upon a time (back in 1967), there were 155 taxpayers with incomes over $200,000 (more than $1.3 million in today’s dollars) who paid no income tax at all. Twenty of them were millionaires. Because the government needed to fund its programs—including the Vietnam War—the Alternative Minimum Tax (AMT) was born as part of the [...]
Last-Minute Tax Tips for 2014
The deadline to file your 2013 taxes is right around the corner. Whether you’re doing your taxes yourself or making a last-minute appointment with a tax professional, here are some things to consider this year: Your Must-Have 2014 Tax Filing Checklist It’s important to be thorough and correct when finishing up your return—even if you’re [...]
Tax Facts: 6 Tax Deductions to Remember This Tax Season
This tax season, even tax professionals are appalled by the complexity of some of the new taxes we’re facing. Visualize 50 nearly-bald CPAs and EAs running screaming from a seminar room, tearing out what’s left of their hair. Me? I just sat there crying. Here’s a look at some tax deduction changes you should remember [...]
Five Simple Steps to Help Prevent the IRS from Auditing You
At the start of my tax career, I was like most people: terrified of an IRS audit. But due to the nature of my clients’ activities in real estate partnerships, I had to face audits head-on. (For example, there was the time a client bought a three-building apartment complex in Canada and one of the [...]
How Married Same-Sex Couples Should File Federal Taxes to Get the Best Refund
Many Americans are facing tax issues this year that they’ve never experienced before. Whether it’s because of a marriage, a home sale or new federal and state rules, questions arising this close to the April 15 tax deadline can be stressful. One big new rule this year is that the federal government is recognizing same-sex [...]
Estate, Death and Inheritance Taxes
An anonymous Silicon Valley billionaire has purchased the world’s most valuable life insurance policy for $201 million, and I think his reasoning behind it is fascinating. He bought the insurance to help his heirs avoid paying a 45 percent inheritance tax after his death. This life insurance policy will pay out twice as much, and [...]
How Do I Figure Out My Tax Bracket?
Your tax bracket determines how much you have to pay in taxes based on your income. In general, the higher your income, the higher your tax bracket, and the more you will pay when filing taxes. How do I determine my tax bracket? If you’re using a tax service, your tax professional should be able [...]
Four Surprises to Avoid When Filing 2013 Taxes
Surprises can be fun, but not when they come in the form of unexpected taxes. When filing your 2013 taxes, be sure to keep an eye out for these four tax curveballs: 1. New tax brackets. There is a new top tax bracket of 39.6 percent, though it appears that it only affects a small [...]