Article Highlights: • Unintentional Penalties • Underpayment of Estimated Tax and Withholding • Late Payment Penalty • Late Filing Penalty • Negligence Penalty • Dishonored Check Penalty • Missing ID Number Penalty Most taxpayers don’t intentionally incur tax penalties, but many who are penalized are simply not aware of the penalties or the impact they can have on their … [Read more...] about Dodging Tax Penalties
Having a Low Taxable Income Year? Ways to Take Advantage of It
Article Highlights: o Taxable Income o Graduated Individual Tax Rates o Take IRA Distributions o Defer Deductions o Convert Traditional IRA Funds into a Roth IRA o Zero Capital Gains Rate o Business Expenses Being unemployed, having had an accident that’s kept you from earning income, incurring a net operating loss (NOL) from a business, having an NOL carryover from a prior … [Read more...] about Having a Low Taxable Income Year? Ways to Take Advantage of It
Year-End Investment Moves
Article Highlights: • Zero Capital Gains Rate • Offset Gains With Losses • Wash Sales If you invest in publicly traded securities, here are a couple of tax-saving possibilities you shouldn’t forget to consider before year-end. Zero Capital Gains Rate - If you are having a low-income year, there may be a way for you to take advantage of it. There is a zero long-term capital … [Read more...] about Year-End Investment Moves
De Minimis Expense Election Required Before Year End
Article Highlights: • Accounting Procedure • $2,500 De Minimis Expensing • Annual Election Small businesses can adopt an accounting procedure that allows them to expense, rather than to capitalize, the purchase (cost) of tangible business property. Generally, the maximum that can be expensed under this provision is whatever amount the business decides between $1 and $2,500 … [Read more...] about De Minimis Expense Election Required Before Year End
Time to Start Thinking About Year-End Tax Moves
Article Highlights: • Maximize Education Tax Credits • Roth IRA Conversions • Minimum Required Distribution • Advance Charitable Deductions • Maximize Health Savings Account Contributions • Prepay Taxes • Pay Tax-deductible Medical Expenses • Take Advantage of the Annual Gift Tax Exemption • Avoid Underpayment Penalties With year-end just around the corner, it is time to … [Read more...] about Time to Start Thinking About Year-End Tax Moves