Two New Tax Rules That May Benefit You!

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Two New Tax Rules May Benefit You

Understanding the NIIT: The 3.8% Tax Can Take a Bite Out of Some Home Sale Profits.

Do You Need a Trust?.

Studying Up on 529 College Savings Plans

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Two New Tax Rules May Benefit You

You've probably heard about the tax benefits that were renewed last December that you were able to claim on your 2014 federal income tax return. But do you know about other new beneficial tax rules that are effective for 2015?

Here are two.

ABLE accounts. These accounts are part of a new program that state governments can set up during 2015...(Read More)

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APRIL 2015

Summer generally is an optimal time to sell your home. If you're putting up a "For Sale" sign on your lawn this year, make sure you understand the 3.8% net investment income tax (NIIT) that may apply to taxable gain on home sales. There are tax effects, triggering events and strategies to reduce or completely eliminate tax that you should be aware of.

Also, are you familiar with 529 savings plans? College saving plans and prepaid tuition plans are two types of savings plans that provide families with tax-saving strategies that can also benefit their children and grandchildren. In this edition we discuss the details of the 529 plans.

If you have any questions that aren't answered in these articles give us a call. We're here to help, so that you can relax.

Understanding the NIIT: The 3.8% Tax Can Take a Bite Out of Some Home Sale Profits

For NIIT purposes, net investment income includes interest, dividends, annuities, rents and royalties, net capital gains, and other investment income, reduced by certain expenses that can be allocated to that income. Several types of income are excluded, including (with certain exceptions) income from an active trade or business.

NIIT doesn't apply to everyone...(Read More)

Do You Need a Trust?

The question is basic to financial planning. Before you can answer, you need to know what you want to accomplish. For instance, say you want to avoid probate, a public court process that validates your will and administers your estate. One way to do this is to create a living trust. A living trust, also known as a grantor trust, can expedite or avoid probate while keeping your assets private.

However, establishing a formal trust is not always necessary if keeping your estate out of probate is your only goal. Depending on the procedure in your state and the assets you intend...(Read More)

Studying Up on 529 College Savings Plans

Two types of savings plans provide families with tax-saving strategies that also benefit their children and grandchildren. College savings plans and prepaid tuition plans are what are known in the tax community as 529 plans. These vehicles have much higher contribution limits than those for other tax-advantaged educational savings plans.

Both types of plans are worth considering. Which one you select will depend on your investing preferences and ...(Read More)