If you file your income taxes as an individual, you might miss out on many of the tax strategies and advantages available to businesses. That’s why it is all the more important to utilize the tax strategies you can take advantage of as an individual filer. One useful tax strategy for lowering your MAGI (modified [...]
Tax Strategies
A personal exemption, in theory, is equivalent to the minimum amount a person would need to get by on at a subsistence level. The idea is that a citizen’s basic subsistence should be exempt from income tax. Of course, the personal exemption amount for 2010 ($3,650, less than half of the poverty line for an [...]
While the IRS has taken strides to become more taxpayer friendly over the years, sometimes Uncle Sam and the taxpayer still can’t see eye to eye. If it seems that the IRS is being totally unreasonable in their dealings, you may be wondering what to do about it. Of course you’re not going to sit [...]
Wondering what exactly to do with your tax refund? Instead of blowing it on a nice dinner or just letting it sit in your bank account, why not receive your tax refund as a savings bond? Starting in January, the IRS allowed taxpayers to buy US Savings Bonds with a portion or the entirety of [...]
Don’t want to just get another check from the IRS this year? Worried you might just blow it on that fancy new kitchen table you saw at Ikea? Don’t worry, you’re not alone. That’s why there are several options available to you instead of just getting a check in the mail this tax season. Let’s [...]
Did you incur any educational costs this tax year? Then you may be able to claim the following five credits on your taxes. These could really help when trying to get the most money out of your tax refund. 1. Qualified Tuition Of course tuition is the number on expense that qualifies for an education [...]
It is never too early to start saving for retirement and recent tax reform has enhanced certain planning opportunities. You may still have time to accumulate significant retirement assets, provided that you plan ahead, stay disciplined, and regularly review your tax strategies. Most people spend years planning and saving for retirement. However, they do not [...]
If wise tax strategy and investing has led you to be financially better off than a close friend or relative, your natural inclination may be to lend them money interest-free in their time of need. However, this is generally a poor tax strategy. If you don’t charge interest, the IRS might charge your beneficiary income [...]
As the holidays approach, many of us are put into a charitable frame of mind. That’s no coincidence: the chance to decrease your tax burden through a strategy of deducting charitable donations is just around the corner. In order to take advantage of this strategy, you have to itemize your donations on your income tax [...]
If you are in a position to sell your business, you have two main types of sales to choose from. You can initiate an entity sale, in which the same entity continues to own all assets of the business, including accounts, inventory and property, only ownership of the entity transfers from you to the buyer. [...]
