Review Category : Taxes

What You Should Know About The Current Trump Tax Plan

Almost a year after President Trump was elected to office, none of the main agenda bills have passed in Congress.  With Thanksgiving looming around the corner for a Congress shut down here in 2017, one of the big questions will be whether the major tax bill passes before the end of the year.  This single tax plan could have a big effect on how the market finishes here in 2017 and its potential impact into 2018.   Here are the key points you should know about the current Trump Tax Plan. Businesses Get The Biggest Cut The current proposal is to reduce the tax rate of “C” Corporations (currently mostly large corporation) to move from the current 35% down to 20%.   Consider this impact for a company that makes $20 billion dollars and currently pays $7 billion dollars in taxes.  Those companies would in theory get back another $3 billion dollars in freed up cash flow.   The current proposal still considers ...

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Four Tax Scams You Should Know Before You File

How many of you have received this type of e-mail at one point in your life . . . DEAR SIR or MADAM, MY AIM OF CONTACTING YOU IS TO SEEK YOUR ASSISTANCE IN TRANSFERRING THE SUM OF THIRTY FIVE MILLION UNITED STATES DOLLARS ONLY (US$35,000,000) OUT OF NIGERIA AND INTO YOUR TRUSTED BANK ACCOUNT ABROAD. THESE FUNDS WERE PART OF THE FUNDS, WHICH WAS FOUND IN HER LATE HUSBAND’S PRIVATE ROOM. IMMEDIATELY AFTER HIS SUDDEN DEATH LAST YEAR AND SHE QUICKLY INFORMED ME, SINCE I VIRTUALLY RUN MOST OF HER SECRET BUSINESS BOTH HERE IN NIGERIA AND OVERSEAS, AS SHE HAS A LOT OF CONFIDENCE IN ME AND FORTUNATELY WITH MY IMMEDIATE ASSISTANCE, AND CONTACT WE WERE ABLE TO DEPOSIT THE MONEY IN A SECURITY VAULT PENDING WHEN THE WHOLE SITUATION WILL BE CALM. These scams were known at the Nigerian Scam letters, and most consumers know that if they received these types of e-mails they should immediately delete ...

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HELP! Someone Filed A Tax Return In My Name!

With the deadline looming for taxpayers, the crunch will be on for people scrambling to get their final documents together and submit their official tax return. Imagine this scenario. You submit your tax return only to receive a rejection notice from the IRS several weeks later saying that they have already received a tax return submitted by you already. How’s that for a situation that is sure to rock your world. Unfortunately, in today’s world all you really need are some social security numbers and the internet to start winning at the tax return identity theft game.  According to TIME Magazine, in 2013 alone more than 5.8 Billion in refunds were issued to criminals who were using other people’s personal information.  The scale, scope, and execution of these fraud schemes have grown substantially in size. What should you do if someone stole your tax refund? Don’t panic. You will likely only figure this out after the IRS rejects your ‘real’ ...

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Are Charitable Deductions Going To Be Wiped Out Under Trump?

For many American families who prepare for year end tax planning, no discussion is complete without talking about charitable contributions.   Many families make charitable contributions by tithing a percentage of their family income, giving cash to local charities, or they end up taking non-cash items from their household and donating them to a worthy charity.  With the potential shake up in the tax law under a Trump regime, will you have your charitable contributions completely wiped out in 2017? First things first.   You don’t really need to worry about charitable contributions if you don’t itemize your deductions at all.  Today, a single filer has a $6,300 standard deduction and a married couple has $12,600 for a standard deduction. In addition, you get to deduct you, your spouse, and your children as personal exemptions on your tax return.  The suggested policy going forward would be to wipe out the personal exemptions and offer a larger standard deduction of $15,000 for a ...

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One BIG 2017 Georgia 529 Plan Change For College

As the cost continues to rise for college education, the state of Georgia is stepping up for the residents of Georgia and offering a new increased tax deduction that can really help Georgia taxpayers. All Georgia single taxpayers may deduct up to $2,000 each year on behalf of any beneficiary regardless of their annual income. Beginning with returns filed in 2017, all Georgia joint taxpayers may now deduct up to $4,000 each year on behalf of any beneficiary regardless of their annual income. Please note that a transfer of funds from another state’s 529 plan is not eligible for the Georgia income tax deduction. Georgia tax forms refer to the Path2College 529 Plan as the “Georgia Higher Education Savings Plan” (GHESP); the Path2College 529 Plan is established by the GHESP. Contributions made during the tax year, or before the following year’s federal tax filing deadline are eligible for the deduction. State tax benefits offered in connection with the Path2College 529 ...

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Be Careful About “Washing” Out Your Tax Losses

With more investors trading stocks as a hobby and the number of day traders who have decided to take over their own portfolios, it is incredibly important that you recognize one little nasty piece of the tax code that can hurt you called the wash rule. The wash rule was set up to more closely define how tax losses can be taken for the short term trading of the same securities.   If an individual decided to sell or trade a security they own at a loss and within 30 days of the sale buys a substantially identical stock or security (or an option) their tax losses may be disallowed.  Remember, the rule can also apply if your spouse buys a substantial amount of the security as well. In our current tax code, the wash sale can affect your personal finances with the following consequences. You will not be able to “realize” or claim, the loss on the sale The disallowed ...

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Don’t Be Fooled By Hillary’s Small Business Plan

I usually don’t read the USA today, but I happened to have a chance to read an article recently (http://usat.ly/2bVCjaz) about Hillary Clinton’s plan to be the President for small business owners.   I was intrigued by the article to see what real change might be coming and as an entrepreneur of many businesses I quickly realized that the proposal was something that only the Stay Puff Marshmallow business person would actually gain any benefit from currently.    Here are the points from the article and then I’ll share on each point my insights on what meaningful proposals could really truly help small business owners do better.  BTW, I haven’t really seen any proposal from Trump yet at all but I do know what I hear from local owners every week Hillary Proposed Problem: Citing licensing and other burdens, Clinton’s campaign says it takes longer to start a business in the U.S. than in countries such as Canada or Denmark.  I laughed ...

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How Did Apple Get A 14.5 Billion Dollar Tax

In the past week it was announced that the European Commission completed its investigation and concluded that Apple would need to pay back a 14.5 billion dollar tax to the EU.   While 14.5 billion only represents about 6% of the cash and investments Apple has on hand, the big question is what kind of precedence this might set for the future of big business overseas in light of the upcoming Presidential Election.   So, in simple terms, how did this tax even happen? This all started when Apple struck at tax deal with Ireland to locate their European Headquarters in Ireland in 1991.   Ireland create tax arrangement between now two Irish companies, Apple Sales International and Apple Operation Europe.    The profits that came from European sales for Apple were recorded in Ireland some of which were taxed and the majority of the profits were recorded through something called a “head office”.  In simple terms, this was an offshore company that wasn’t ...

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Trump vs. Clinton Tax Plans

While the election is kicking into high gear, there may be many reasons why you may choose one candidate over the other.  Or, you just may choose to vote for one of the independents this year.   Since I write a column mostly about smart money moves, it might be in the best interest of your family to understand the basics of what the candidates are proposing for tax overhaul and reform.  Here is the high level of Trump v. Clinton for income taxes. PERSONAL INCOME TAX Trump is proposing we move to four tax brackets 0%, 10%, 20%, 25%. More importantly, he is wanting to make the standard deduction for single people at $25,000 and for married couples $50,000 which means those families will pay no tax at all. Clinton is going to hold the same general similar tax bracket structure we have in today’s world. However, she is looking to make two major changes: one being a 4% surtax ...

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Helping You Know What You Need to Pay Taxes On!

– Ted Jenkin | Atlanta Money Guy Topic: Oxygen Financial Helps You Know What You Need to Pay Taxes On! Taped 8/8/16 Listen every Tuesday morning at 8:00 a.m. on ROCK 100.5 | Atlanta’s Rock Station to “Your Smart Money Moves” with The Rock 100.5 Morning Show and oXYGen Financial. Ted Jenkin, CFP® and Kile Lewis, CRPC® are the founders of oXYGen Financial, and our chief financial officers. All your money questions answered Breathe easier at http://oXYGenFinancial.net ...

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