Mutual funds are so common these days that many people overlook the tax considerations involved. Here are some tips on how to be tax-smart with these investment vehicles. Avoid Year-End Investments Typically, mutual funds distribute accumulated dividends and capital gains toward the end of the year. It’s generally wise to avoid investing in a fund [...]
Passage of the Tax Cuts and Jobs Act (TCJA) in December 2017 has led to confusion over some longstanding deductions. In response, the IRS recently issued a statement clarifying that the interest on home equity loans, home equity lines of credit and second mortgage will, in many cases, remain deductible. How It Used To Be [...]
Documenting every sale carefully helps ensure that your financial records and reports will be accurate. The sales receipt is the right tool for this in specific situations. You know how important it is to obtain receipts for the expenses you and your employees incur. You need to record them, analyze their impact on your cash [...]
Many investors elect to have their distributions automatically reinvested in their mutual funds. But it’s important to remember that those distributions are taxable regardless of whether they’re reinvested or paid out in cash. Reinvested distributions increase your cost basis in a fund, so it’s critical to track your basis carefully to avoid double taxation. If [...]
In an increasingly globalized society, many people choose to open offshore accounts to deposit a portion of their wealth. When doing so, it’s important to follow the IRS’s strict foreign accounts reporting requirements. In a nutshell, if you have a financial interest in or signature authority over any foreign accounts, including bank accounts, brokerage accounts, [...]
Many business owners use a calendar year as their company’s tax year. It’s intuitive and aligns with most owners’ personal returns, making it about as simple as anything involving taxes can be. But for some businesses, choosing a fiscal tax year can make more sense. What’s A Fiscal Tax Year? A fiscal tax year consists [...]