Mortgage Interest Rates- Act quick if you want to help your child buy a home Mortgage interest rates are still at historically low levels, but they’re expected to go up by year end. So if you’ve been thinking about helping your child — or grandchild — buy a home, consider acting soon. There also are some favorable tax factors for mortgage rates that will help: 0% capital gains rate. If … Read more
Tread carefully when determining compensation for S corp. shareholder-employees Determining Compensation for S corp. Shareholder-Employees: By distributing profits in the form of dividends rather than salary. An S corporation and its owners can avoid payroll taxes on these amounts. Because of the additional 0.9% Medicare tax on wages in excess of $200,000 ($250,000 for joint filers and $125,000 for married filing separately). The potential tax savings may be even greater … Read more
Tax treatment of NQSOs differs from that of their better-known counterpart Tax treatment of NQSOs: With non-qualified stock options (NQSOs), if the stock appreciates beyond your exercise price, you can buy shares at a price below what they’re trading for. This is the same as for the perhaps better-known incentive stock options (ISOs). The tax treatment of NQSOs, however, differs from that of ISOs: NQSOs create compensation income — taxed … Read more
