Here’s how to pay for taxes on your Roth IRA conversion, advisors say
Srdjanpav | E+ | Getty Images More from FA Playbook: Here’s a look at other stories impacting the financial advisor business. When a Roth conversion is completed, you’ll owe regular income taxes on the converted balance, based on your current-year taxable income. Ideally, you’re “managing the tax bracket,” said CFP Jim Guarino, managing director at […]
Here’s how to maximize your tax breaks for charitable giving
Mixetto | E+ | Getty Images As year-end approaches, you may be eyeing a donation to charity — and certain gifting strategies can boost your tax break, experts say. In 2023, U.S. charitable giving hit $557.16 billion, up roughly 2% compared to 2022, according to Indiana University Lilly Family School of Philanthropy’s annual report released […]
How to leverage the 0% capital gains bracket as bitcoin surges
Hispanolistic | E+ | Getty Images Crypto investors could face higher taxes amid the surging price of bitcoin. But if you’re in the 0% capital gains bracket, you can reduce future taxes with a lesser-known strategy, experts say. The tactic, known as tax-gain harvesting, is selling profitable crypto in a lower-income year. You can leverage the […]
How to turn stock market losses into tax savings
Stock market losses are never pleasant—whether through direct equities or mutual funds—but they offer a rare silver lining: the potential to reduce your tax liability through capital loss set-offs. Here’s how savvy investors can use this to their advantage. Set-off against gains Capital losses can be set off against capital gains, allowing investors to reduce […]
Here’s how to reduce a ‘tax bomb’ on an inherited IRA
Greg Hinsdale | The Image Bank | Getty Images If you’ve inherited a pretax individual retirement account since 2020, you could face a sizable tax bill without proper planning, experts say. Previously, heirs could take inherited IRA withdrawals over their lifetime, known as the “stretch IRA.” However, the Secure Act of 2019 enacted the “10-year […]
How To Give Away A $500,000 Comic Book Collection
Seven decades after he became addicted to Superman, Gary Prebula’s collection of graphic novels and comics has a permanent home at the University of Pennsylvania library. The collection is now going through more processing, by both librarians and by an appraiser hired by the Prebulas. (While the collection is worth north of $500,000, it’s up […]
Biden’s team asks CEOs how to further boost the economy while Trump says business is on his side
WASHINGTON (AP) — On the campaign trail, President Joe Biden likes to take a hard thwack at corporate America. The Democrat tells voters that companies should pay more in taxes and he blames many businesses for fueling higher prices by stoking “greedflation” and “shrinkflation.” But for the past several months, top Biden administration officials have […]
How to calculate capital gains taxes when selling your home
Westend61 | Westend61 | Getty Images As home values climb, more Americans owe capital gains taxes when selling property. But knowing how to calculate your home’s profit could reduce your bill, experts say. Most Americans do not owe taxes for selling a primary residence because of a special tax break — known as the Section […]
How to reduce capital gains taxes on your home sale
The Good Brigade | Digitalvision | Getty Images More Americans are paying capital gains taxes on home sale profits amid soaring property values — but there are ways to reduce your bill, experts say. In 2023, nearly 8% of U.S. home sales yielded profits exceeding $500,000, compared with about 3% in 2019, according to an […]
How to answer updated crypto tax question
Whether you’re an active cryptocurrency trader or you’ve dabbled in the word of virtual currency, the IRS wants to know. In fact, one of the first questions on Form 1040, which is used by most people to file their tax returns, asks the following: “At any time during 2023, did you: (a) receive (as a […]