Disaster planning is usually associated with businesses. But individuals need to prepare for worst-case scenarios, as well. Unfortunately, the topic can seem a little overwhelming. To help simplify matters, here are 5 keys to disaster planning that everyone should consider: Insurance. Start with your homeowner’s coverage. Make sure your policy covers flood, wind and [...]
If you’re an investor looking to save tax dollars, your kids might be able to help you out. Giving appreciated stock or other investments to your children can minimize the impact of capital gains taxes. For this strategy to work best, however, your child must not be subject to the “kiddie tax.” This tax applies [...]
Are you a highly compensated employee (HCE) approaching retirement? If so, and you have a 401(k), you should consider a potentially useful tax-efficient IRA rollover technique. The IRS has specific rules about how participants such as you can allocate accumulated 401(k) plan assets based on pretax and after-tax employee contributions between standard IRAs and Roth [...]
Granted it may not be as exhilarating as jumping off the high dive, but a dip into these important documents now may save you a multitude of headaches later. TAX LAW RULES Generally, you should keep tax-related documents as long as the IRS has the ability to audit your return or assess additional taxes [...]
From time to time, a business may find that its operating expenses and other deductions for a particular year exceed its income. This is known as incurring a net operating loss (NOL). In such cases, companies (or their owners) may be able to snatch some tax relief from this revenue defeat. Under the Internal Revenue [...]
A royal flush can be quite a rush. But the IRS casts a wide net when defining gambling income. It includes winnings from casinos, horse races, lotteries and raffles, as well as any cash or prizes (appraised at fair market value) from contests. If you participate in any of these activities, you must report such [...]