Personal Tax

We spend most of our lives saving for retirement by putting funds away in tax-advantaged ways.  But many of us forget about planning the withdrawals so that they are tax-advantaged as well. Although there are exceptions, retirement funds generally cannot be withdrawn until we are age 59.5. If taken out sooner, there is a 10% penalty that applies in most cases. In addition, … [Read more...] about Planning Your RMD and IRA Distributions For 2012

The decision concerning whom you wish to designate as the beneficiary of your traditional IRA is critically important. This decision affects the minimum amounts you must withdraw from the IRA when you reach age 70-1/2, who will get what remains in the account after your death, and how that IRA balance can be paid out. What's more, a periodic review of whom you've named as IRA … [Read more...] about Naming Your IRA Beneficiary – More Complicated Than You Might Expect

If you own a home in a vacation locale – whether it is your primary residence or a vacation home – and are considering renting it out to others, there are complicated tax rules, referred to as the “vacation home rental rules,” that you need to be aware of. Generally, the tax code breaks a “vacation rental” into three categories, each with a different treatment for income and … [Read more...] about Renting Your Vacation Home

If your tax deductions normally fall short of itemizing your deductions or even if you are able to itemize, but only marginally, you may benefit from using the “bunching” strategy. The tax code allows most taxpayers to utilize the standard deduction or itemize their deductions if that provides a greater benefit.  As a rule, most taxpayers just wait until tax time to add … [Read more...] about Bunching Your Deductions Can Provide Big Tax Benefits

Waiting for your regular appointment to discuss current tax-related issues can create problems or cause you to miss out on beneficial options that need to be timely exercised before year-end. Generally, you should call this office any time you have a substantial change in taxable income or deductions. By doing so, we can advise you about how to optimize your tax liability, … [Read more...] about Important Times to Seek Assistance