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Avoid a 50% Penalty: Take Retirement Plan RMDs by December 31

After you reach age 70½, you must take annual required minimum distributions (RMDs) from your IRAs (except Roth IRAs) and, generally, from your defined contribution plans (such as 401(k) plans). […]

Don’t Miss Your Opportunity to Make 2015 Annual Exclusion Gifts

Recently, the IRS released the 2016 annually adjusted amount for the unified gift and estate tax exemption and the generation-skipping transfer (GST) tax exemption: $5.45 million (up from $5.43 million in […]

Year-end Strategies to Reduce Taxes on Investment Income

While economics — not tax consequences — should drive your investment decisions, it’s important to consider taxes. Higher income taxpayers may be facing the 39.6% short-term capital gains rate, the 20% long-term […]

Tax-deductible Contributions to Qualified Charities

Donations to charities are generally tax-deductible if the charity is qualified by the Internal Revenue Service. You can check with the IRS’s online search tool, Exempt Organizations (EO) Select Check […]

Saving for college through a 529 savings plan

You should start saving for your children’s college education long before they start attending college. Saving through a Section 529 plan may provide you with several benefits. While contributions are […]

Tax consequences of refinancing your home (Part 2 of 2)

With certain limitations, points paid (i.e. prepaid interest) on the acquisition of a qualified residence are deductible in the year paid. The treatment of points paid on a refinancing are […]

Tax consequences of refinancing your home (Part 1 of 2)

While interest rates are still low, you may be considering refinancing the mortgage on your principal residence or second residence to take advantage of low interest rates.  You should beware […]

To Bunch or not to Bunch?

Most moderate or high income taxpayers will not receive a federal tax benefit for their unreimbursed medical expenses. While medical expenses are deductible as an itemized deduction, taxpayers can deduct […]

Using an S Corporation to Minimize FICA and Medicare Tax

An S corporation shareholder-employee is required to earn at least a reasonable salary paid through a W-2. The W-2 wages will be subject to the normal payroll tax for both […]