By carefully selecting which investments to sell- you may be able to save some money on your 2018 tax bill. Creating equilibrium between gains and losses If you’ve sold investments at a gain this year, consider selling some losing investments to absorb the gains. One tax strategy to balance this gain is by also selling investments at a loss. This method is referred to as “harvesting losses”. If, however, you’ve sold investments at … Read more
Throw a company picnic this summer and enjoy larger tax deduction Many businesses host a picnic for employees in the summer. It’s a fun activity for your staff and you may be able to take a larger deduction for the cost than you would on other meal and entertainment expenses. Deduction limits Generally, businesses are limited to deducting 50% of allowable meal and entertainment expenses. But certain expenses are 100% … Read more
Reduce taxes on your investments with these year-end strategies While tax consequences should never drive investment decisions, it’s critical that they be considered — especially by higher-income taxpayers, who may be facing the 39.6% short-term capital gains rate, the 20% long-term capital gains rate and the 3.8% net investment income tax (NIIT). Holding on to an investment until you’ve owned it more than one year so the gains qualify for … Read more
All income investments aren’t alike when it comes to taxes The tax treatment of investment income varies, and not just based on whether the income is in the form of dividends or interest. Qualified dividends are taxed at the favorable long-term capital gains tax rate (generally 15% or 20%) rather than at the applicable ordinary-income tax rate (which might be as high as 39.6%). Interest income generally is taxed at … Read more
