1) Harvest Capital Losses

Capital gains property includes stocks, bonds and mutual funds.  Currently, the stated rate on long term capital gains is 15%.  If you have a net loss after netting all of your gains and losses, the tax deduction is limited to $3,000. Any excess capital losses can be carried into the future. more…

Here are the five reasons everyone should contribute to an IRA.

1) Income Tax Deduction.  Many taxpayers who contribute to an IRA will get a tax deduction.  Some taxpayers with higher incomes that participate in a retirement plan at work will not be able to get a tax deductible IRA. Taxpayers are allowed to contribute $5,000 annually to an IRA if they have at least that amount of earned income and are under age 70. Taxpayers over age 50 are allowed to contribute an additional $1,000 annually. more…

Deciding whether to open an IRA or  a Roth IRA is a major decision with potentially large financial consequences. Both forms of the IRA are great ways to save for retirement, although each offers different advantages and rules.  more…

In December, 2010 President Obama signed into law the tax bill which extends many of the Bush-Era federal income tax cuts and the Pension Protection Act of 2006. This law has extended the provision that allows some people to make qualified charitable distributions from their IRAs. more…

The first half of the year is in the books.  It's time to take a look at your withholding and estimated tax payments.  Why is this important?  To avoid any potential penalty for underpayment of estimated taxes.  more…