Taxes are what you pay to the federal, state and local governments where you live. Different types of taxes include income taxes, capital gains tax, sales tax, estate tax and real estate taxes such as property tax. Learn how to bequest property and do transactions in a way that will help you pay less taxes and follow the law.
Year-End Tax Tips
Right about now, you’re preoccupied with holiday parties, gift wrapping, Secret Santas, and where you’re going to spend your Christmas break, if you get one. The last thing you want to think about is taxes. So let’s make this as painless as possible. Here is a checklist of things to do this week. Get all [...]
Tax Withholding Roulette: Plan Now to Save Money for April 18
My husband told me about a friend of his who’s been claiming “married with nine exemptions” all year. He needed the cash. Jose just submitted a change to single with 0 exemptions at the beginning of November to catch up. Is that a good idea? Uh….No! Tax Withholding Roulette Most companies require about ten to [...]
Tax Advantages of Being Charitable
Aah….This time of year is filled with generosity. Even curmudgeons are infected with the holiday spirit. Remember, however, that not everyone is enjoying this season’s largess. This year and last, many people’s lives have fallen apart. People who used to be your neighbors or coworkers—or even you—are now out of work, clutching at unemployment checks, [...]
Year-End Bonuses: Are They Taxable?
The first year-end bonus I ever got was a $25 gift certificate to the local supermarket. The best bonus I ever got was a car, $100 cash, and a box of chocolates. Alas, the 260Z was made by Tonka. But that C-note was one whole week’s wages—after only a month on the job! What a [...]
Tax Tips That Can Save You Real Money
Most investors have their eye on the wrong ball. They try to time the market, pick stocks, and pick “hot” fund managers. There is no data indicating anyone can engage in these activities successfully over an extended period of time. Much-touted winning streaks of the investment guru du jour are a consequence of luck and [...]
Winner! Winner! Winner!: Tax Implications of Winning Lotteries and Game Show Prizes
Someone just won $30 million in the California SuperLotto Plus. It wasn’t me. Doesn’t it burn you up when you look up your numbers and someone else has won? Playing the lottery isn’t the only way to try your luck and make it big these days. With the proliferation of game shows, reality shows, Internet [...]
Investment Income Tax Won’t Hit Most Homeowners
New investment income tax won't hit most homeowners. The Obama health care bill contains a new investment income tax but it won't hit most homeowners. Homeowner's with investment income over $250,000 will be hit with a new investment income tax. Investment income includes investment profit from a home sale, but the investment income tax won't hit most homeowners. Homeowners hit by the new investment income tax must have investment income over $250,000, so the investment income tax won't hit most homeowners.
Class Action Lawsuit Settlement: Good News or Bad For Your Taxes?
This article was written by guest blogger Eva Rosenberg. I recently received a question from Susan, who wanted to know if a settlement from a class action suit is taxable. Great question, but it’s also very broad and open-ended. A number of examples came to mind. First, let’s talk about the woman who won a [...]
Unromantic Money and Tax Talk before Marriage
Eileen was a single mom and successful businesswoman. Last July, she married an adorable and charming man. He didn’t work but was helpful around the house and with her daughter. So the Mr. Mom thing was fine with her. Life was good. Eileen started to think about buying a home. Oops. Suddenly, Eileen learned Mr. [...]
Tax On Winning A House
Some people are lucky and win a house in a raffle. But if they do, they need to know that they will have to pay taxes on the value of the house they have won. The IRS will consider the winnings from the raffle as income, and you'll have to pay income taxes on the value of the house. Most house raffles by individuals are illegal in most states. While in some states charities can raffle off homes and keep the proceeds for their use in one state, charities can work with homeowners to raffle off their homes. There are strict rules and a house raffle may not be much better than trying to auction the home or selling the home using conventional methods.