The days of classic “tax shelters”—such as cattle breeding or oil drilling deals—are long gone. But at least one major tax shelter is still standing: your home. If you own your principal residence, you can cash in on a bevy of tax breaks, saving thousands of tax dollars or even more. Accordingly, here are six… Continue reading
Monthly Archives: August 2020
Back to the Future: Prior-Law Kiddie Tax Rates Retroactively Reinstated
Do your children or grandchildren receive unearned income from investments? Federal tax law contains provisions that are designed to prevent high-net-worth individuals from shifting investment income to children and young adults in lower tax brackets to minimize the family’s overall tax bill. These so-called “kiddie tax” rules have gone through several changes in recent years.… Continue reading
How to Avoid Penalties on Early Retirement Account Withdrawals
Economic fallout from the COVID-19 crisis may cause some cash-strapped individuals to default on loans they’ve taken out from company qualified retirement plans, including 401(k) and profit-sharing plans. Defaulting on a plan loan will cause adverse tax and retirement-saving consequences. Here are the details. Retirement Plan Loan Basics A participant in an employer-sponsored qualified retirement… Continue reading
