Over the holiday weekend and in last night’s State of the Union address, President Obama unveiled several ideas he believes will strengthen the country’s workforce, education and infrastructure. He plans to pay for these proposals through corporate tax reform and higher income taxes on people in the top tax bracket. (more…)
Philanthropic US taxpayers should greet the Tax Increase Prevention Act of 2014 with holiday cheer. The law extends several expired tax provisions for 2014 only—including qualified charitable IRA distributions. But other giving strategies may make some taxpayers merrier come tax time. (more…)
With the year-end drawing near, many US taxpayers are starting to think about how much to give to tax-deductible causes. But too often, even financially sophisticated people miss a simple way to boost the tax benefit from their charitable donations: by giving appreciated securities, rather than cash. (more…)
Tara Thompson Popernik (pictured) and Robert Dietz
With tax-exempt income from US municipal bond portfolios still near historic lows, investors spending from their portfolios can no longer get the income they need by simply increasing their allocation to high-quality, intermediate-duration bonds. As a result, many investors today are chasing yield into dangerous territory. (more…)
Want to reduce tax on your investment income? Avoid sales of appreciated stocks held less than a year. Here’s how it might have helped some disappointed Facebook shareholders earlier this year.
Many investors adopt tax-reducing strategies from year to year without taking a step back to look at the big picture. But how you save or spend money today can have a profound impact on your after-tax wealth over the long term and, ultimately, on your legacy. (more…)
The option to front-load funding makes a tax-deferred college savings plan is a great way to avoid taxes on the future growth of funds earmarked for higher-education expenses. We project that the taxes avoided over a 10-year savings horizon could pay for a full year of college. (more…)
It is well known that taxes began to take a bigger bite out of income for the well-off in 2013. Top marginal tax rates rose, and some exemptions and deductions were phased out. What is less well known is that investors spending from their portfolios—even those investors whose tax rates didn’t rise—may be facing higher tax bills, too.
Many Americans made more money in 2013, thanks in part to last year’s soaring equity market and continuing economic recovery. Partly as a result, however, many Americans will be writing bigger checks to Uncle Sam come April 15. Here are the three things most people overlooked in anticipating their 2013 tax bill: (more…)
Tara Thompson Popernik (pictured) and Brian Wodar
Many people see December 31 as the deadline for tax-advantaged giving each year. While that’s generally true for charitable donations, it may make sense to give one type of gift as early in the year as possible—the annual exclusion gift. (more…)