Tax Filing Requirements For Minor Children with Investment Income
When parents gift money to their kids, instead of having the money sit in a savings account, often parents will set up UTMA accounts at an investment firm to generate investment returns in the account that can be used by the child at a future date. Depending on the amount of the investment income, the child may be required to file a tax return.
Do You Have Enough To Retire? The 60 Second Calculation
Do you have enough to retire? Believe it or not, as financial planners, we can often answer that question in LESS THAN 60 SECONDS just by asking a handful of questions. In this video, I’m going to walk you through the 60-second calculation.
New Age 60 – 63 401(k) Enhanced Catch-up Contribution Starting in 2025
Good news for 401(k) and 403(b) plan participants turning age 60 – 63 starting in 2025: there is now an enhanced employee catch-up contribution thanks to Secure Act 2.0 that passed back in 2022. For 2025, the employee contributions limits are as follows: Employee Deferral Limit $23,500, Age 50+ Catch-up Limit $7,500, and the New Age 60 – 63 Catch-up: $3,750.
Surrendering an Annuity: Beware of Taxes and Surrender Fees
There are many reasons why individuals decide to surrender their annuities. Unfortunately, one of the most common reasons that we see is when individuals realize that they were sold the annuity by a broker and that annuity investment was either not in their best interest or they discover that there are other investment solutions that will better meet the investment objectives. This situation can often lead to individuals making the tough decision to cut their losses and surrender the annuity. But before surrendering their annuity, it’s important for investors to understand the questions to ask the annuity company about the surrender fees and potential tax liability before making e the final decision to end their annuity contract.
Why Do Wealthy Families Set Up Foundations and How Do They Work?
When a business owner sells their business and is looking for a large tax deduction and has charitable intent, a common solution is setting up a private foundation to capture a large tax deduction. In this video, we will cover how foundations work, what is the minimum funding amount, the tax benefits, how the foundation is funded, and more…….
Tax-Loss Harvesting Rules: Short-Term vs Long-Term, 30-Day Wash Rule, $3,000 Tax Deduction, and More…….
As an investment firm, November and December is considered “tax-loss harvesting season” where we work with our clients to identify investment losses that can be used to offset capital gains that have been realized throughout the year in an effort to reduce their tax liability for the year. But there are a lot of IRS rule surrounding what “type” of realized losses can be used to offset realized gains and retail investors are often unaware of these rules which can lead to errors in their lost harvesting strategies.
The Huge NYS Tax Credit Available For Donations To The SUNY Impact Foundation
There is a little-known, very lucrative New York State Tax Credit that came into existence within the past few years for individuals who wish to make charitable donations to their SUNY college of choice through the SUNY Impact Foundation. The tax credit is so large that individuals who make a $10,000 donation to the SUNY Impact Foundation can receive a dollar-for-dollar tax credit of $8,500 whether they take the standard deduction or itemize on their tax return. This results in a windfall of cash to pre-selected athletic programs and academic programs by the donor at their SUNY college of choice, with very little true out-of-pocket cost to the donors themselves once the tax credit is factored in.
The Trump Tax Plan for 2025: Social Security, Tips, Overtime, SALT Cap, and more….
It seems as though the likely outcome of the 2024 presidential elections will be a Trump win, and potentially full control of the Senate and House by the Republicans to complete the “full sweep”. As I write this article at 6am the day after election day, it looks like Trump will be president, the Senate will be controlled by the Republicans, and the House is too close to call. If the Republicans complete the full sweep, there is a higher probability that the tax law changes that Trump proposed on his campaign trail will be passed by Congress and signed into law as early as 2025.
