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.
Tax Implications of Quit Claim Deed: Better to Inherit Property
It's better to inherit property from your parents or family members rather than receiving it through a quit claim deed. The tax implications of receiving a property through a quit claim deed are much greater than inheriting a property. When estate planning, it's better to put the property in a will or trust, rather than transfer the property through a quit claim deed.
New Year’s Tax Resolutions
In terms of taxes, 2010 was quite a roller coaster. More tax acts, encompassing more laws, were passed in 2010 than in any other year, except perhaps 1986—the year the United States Internal Revenue Code was overhauled in the Tax Reform Act. Did you have a good tax year? Did you get back as much [...]
Year-End Tax Tips
Right about now, you’re preoccupied with holiday parties, gift wrapping, Secret Santas, and where you’re going to spend your Christmas break, if you get one. The last thing you want to think about is taxes. So let’s make this as painless as possible. Here is a checklist of things to do this week. Get all [...]
Tax Withholding Roulette: Plan Now to Save Money for April 18
My husband told me about a friend of his who’s been claiming “married with nine exemptions” all year. He needed the cash. Jose just submitted a change to single with 0 exemptions at the beginning of November to catch up. Is that a good idea? Uh….No! Tax Withholding Roulette Most companies require about ten to [...]
Tax Advantages of Being Charitable
Aah….This time of year is filled with generosity. Even curmudgeons are infected with the holiday spirit. Remember, however, that not everyone is enjoying this season’s largess. This year and last, many people’s lives have fallen apart. People who used to be your neighbors or coworkers—or even you—are now out of work, clutching at unemployment checks, [...]
Year-End Bonuses: Are They Taxable?
The first year-end bonus I ever got was a $25 gift certificate to the local supermarket. The best bonus I ever got was a car, $100 cash, and a box of chocolates. Alas, the 260Z was made by Tonka. But that C-note was one whole week’s wages—after only a month on the job! What a [...]
Tax Tips That Can Save You Real Money
Most investors have their eye on the wrong ball. They try to time the market, pick stocks, and pick “hot” fund managers. There is no data indicating anyone can engage in these activities successfully over an extended period of time. Much-touted winning streaks of the investment guru du jour are a consequence of luck and [...]
Winner! Winner! Winner!: Tax Implications of Winning Lotteries and Game Show Prizes
Someone just won $30 million in the California SuperLotto Plus. It wasn’t me. Doesn’t it burn you up when you look up your numbers and someone else has won? Playing the lottery isn’t the only way to try your luck and make it big these days. With the proliferation of game shows, reality shows, Internet [...]
Investment Income Tax Won’t Hit Most Homeowners
New investment income tax won't hit most homeowners. The Obama health care bill contains a new investment income tax but it won't hit most homeowners. Homeowner's with investment income over $250,000 will be hit with a new investment income tax. Investment income includes investment profit from a home sale, but the investment income tax won't hit most homeowners. Homeowners hit by the new investment income tax must have investment income over $250,000, so the investment income tax won't hit most homeowners.
Class Action Lawsuit Settlement: Good News or Bad For Your Taxes?
This article was written by guest blogger Eva Rosenberg. I recently received a question from Susan, who wanted to know if a settlement from a class action suit is taxable. Great question, but it’s also very broad and open-ended. A number of examples came to mind. First, let’s talk about the woman who won a [...]