Tax Planning | What to do with mutual funds at year-end

As we near the end of 2018, now is a great time to analyze the mutual fund holdings in your taxable accounts and take steps to avoid potential tax snares. Here are some helpful ideas for you to keep in mind. Understand your capital gains Capital gains are unavoidable on mutual funds by merely holding on to the shares. Near the end of the year, funds typically distribute all, or … Read more

How to save tax on restricted stock award

It is common for employees to receive stock-based compensation from their employer as part of their compensation and benefits package. However, the tax consequences of such compensation can be complex — subject to ordinary-income, capital gains, employment and other taxes. On the other hand, if you receive restricted stock awards, you might have a tax-saving opportunity in the form of the Section 83(b) election. Converting ordinary income to long-term capital … Read more

What you need to know about the tax treatment of ISOs

Incentive stock options allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the grant date. If the stock appreciates, you can buy shares at a price below what they’re then trading for. However, complex tax rules apply to this type of compensation.  Current tax treatment ISOs must comply with many rules but receive tax-favored treatment: … Read more

Why investing in small-business stocks may make more tax sense than ever

Why investing in small-business stocks may make more tax sense than ever By purchasing stock in certain small businesses, you can not only diversify your portfolio but also enjoy preferential tax treatment. And under a provision of the tax extenders act signed into law this past December (the PATH Act), such stock is now even more attractive from a tax perspective. 100% exclusion from gain The PATH Act makes permanent … Read more