Pay attention to the details when selling investments
Posted by Kim Chen on October 27th, 2017
If you don’t pay attention to the details, the tax consequences of selling an investment may be different from what you expect. For example, if you bought the same security at different times and prices and want to sell high-tax-basis shares to reduce gain or increase a loss to offset other gains, be sure to […]
Nonqualified Stock Options Demand Tax Planning Attention
Posted by Kim Chen on October 27th, 2017
If you work for a corporation, you might receive nonqualified stock options (NQSOs). If the stock appreciates beyond your exercise price, you can buy shares at a price below what they’re trading for. NQSOs create compensation income taxed at ordinary-income rates on the “bargain element” (the difference between the stock’s fair market value and the […]
3 midyear tax planning strategies for individuals
Posted by Kim Chen on October 23rd, 2017
Here are three tax strategies for individuals that can be more effective if you begin executing them midyear: 1) Take steps to stay out of a higher tax bracket, such as deferring income and accelerating deductible expenses or shifting income to family members in lower tax brackets. 2) Sell depreciated investments to generate losses to […]
A Refresher on the ACA’s Tax Penalty on Individuals Without Health Insurance
Posted by Kim Chen on October 23rd, 2017
With repeal and replace efforts apparently having collapsed for now, it’s a good time for a refresher on the Affordable Care Act’s tax penalty on individuals without “minimum essential” health coverage. The 2017 penalty generally is the greater of: 1) 2.5% of household income above the taxpayer’s filing threshold, or 2) $695 ($347.50 for household […]
Sec. 502.Special Disaster-Related Rules for Use of Retirement Funds
Posted by Kim Chen on October 22nd, 2017
a)Tax-Favored withdrawals from retirement plans.— (1)In general.— Section 72(t) of the Internal Revenue Code of 1986 shall not apply to any qualified hurricane distribution. (2)Aggregate dollar limitation.— (A)In general.— For purposes of this subsection, the aggregate amount of distributions received by an individual which may be treated as qualified hurricane distributions for any taxable year […]
