Article Highlights Regular and capital gains tax rates increase for higher income taxpayers New 3.8% net investment income tax Additional 0.9% health insurance payroll and self-employment tax Phase-out of exemption deduction Phase-out of itemized deductions Many higher-income taxpayers are in for a shock when their 2013 income tax returns are prepared. In 2013, a … [Read more...] about Your 2013 Tax Bill May Give You A Shocker
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Underpayment Penalties Going to Get You?
Article Highlights Taxpayers can be hit with underpayment penalties if their withholding and estimated payments are too low. Underpayment penalties can be avoided by prepaying a safe-harbor amount of 90% of the current tax liability or 100% of the prior year’s tax liability. The safe harbor for taxpayers with an AGI greater than $150,000 in the prior year is 90% of the … [Read more...] about Underpayment Penalties Going to Get You?
Basis Is An Important Tax Term!
Article Highlights: Basis is the point from which taxable gain or loss is measured Good basis records are required to minimize taxable gains Improvements, casualty losses, business depreciation, legal expenses, title costs, etc., can all affect basis. An important tax term that everyone should know is “basis.” The odds are very high that you will encounter the term … [Read more...] about Basis Is An Important Tax Term!
Take Advantage of the IRA-to-Charity Transfer
Article Highlights Direct IRA-to-charity transfers are allowed in 2013 for taxpayers age 70½ and over. Maximum transfer allowed is $100,000. Transfer counts towards the required minimum distribution. Beneficial for taxpayers with Social Security income and those who do not itemize their deductions. For 2013, if you are age 70½ and over, you are allowed to make direct … [Read more...] about Take Advantage of the IRA-to-Charity Transfer
Avoid Home Cancellation of Debt Income
Article Highlights Forgiven debt is taxable. Forgiven home mortgage acquisition debt is excludable. Without a last-minute congressional extension, the home mortgage acquisition debt exclusion expires at the end of 2013. When a taxpayer settles a debt for less than its full amount, the forgiven amount of the debt is taxable, unless the taxpayer qualifies for one of two … [Read more...] about Avoid Home Cancellation of Debt Income