Your 2013 Return May Be Your Last Chance For Two Depreciation-Related Breaks

Posted on March 19, 2014

If you purchased qualifying assets by Dec. 31, 2013, you may be able to take advantage of these depreciation-related breaks on your 2013 tax return: 1. Bonus depreciation. This additional first-year depreciation allowance is, generally, 50%. Among the assets that … Continue reading →

2013 Higher Education Breaks May Save Your Family Taxes

Posted on March 11, 2014

Tax credits can be especially valuable because they reduce taxes dollar-for-dollar; deductions reduce only the amount of income that’s taxed. A couple of credits are available for higher education expenses: The American Opportunity credit — up to $2,500 per year … Continue reading →

Don’t Overlook Reinvested Dividends

Posted on March 3, 2014

One of the most common mistakes investors make is forgetting to increase their basis in mutual funds to reflect reinvested dividends. Many mutual fund investors automatically reinvest dividends in additional shares of the fund. These reinvestments increase tax basis in … Continue reading →

Could Deducting State And Local Sales Taxes Save You More?

Posted on February 25, 2014

For the last several years, taxpayers have been allowed to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. Although this break hasn’t yet been extended to 2014, it is available … Continue reading →

Are You Meeting The ACA’s Additional Medicare Tax Withholding Requirements?

Posted on January 23, 2014

Under the Affordable Care Act (ACA), beginning in 2013, taxpayers with FICA wages over $200,000 per year ($250,000 for joint filers and $125,000 for married filing separately) had to pay an additional 0.9% Medicare tax on the excess earnings. Unlike … Continue reading →

Beware Of The AMT When Doing Year-End Tax Planning

Posted on November 21, 2013

As year-end approaches, you may be trying to accelerate deductible expenses into 2013 to reduce, or at least defer, tax. But you must beware of the alternative minimum tax (AMT) — a separate tax system that limits some deductions and … Continue reading →