How Long Can I Carry Forward My Capital Gain Losses?

We are almost two-thirds done with 2013 and some of you haven’t even completed your tax returns.  For those of you who filed and finished your tax returns in April, most of that paperwork is neatly tucked away in your home filing cabinet.   Since the stock market has run up over the past year most investors have made gains in their stock and stock mutual fund positions.   However, the majority of tax payers never look at their capital losses from prior years to do effective tax planning.  So just how long can you carry forward your capital gain losses? First, you should be aware that you can sponge up capital gains year to year against any capital losses or carry forward losses that you have on your tax return.   This means if you have a carry forward loss of $30,000 from a prior year and had $30,000 of long-term capital gains here in 2013, you would essentially have a wash.   ...

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The Conservation Easement Charitable Deduction

Prof. Beckett G. Cantley* Holders of historically and environmentally significant real property often desire to maintain the property in its present state. However, undeveloped or historically preserved use is unlikely to be the most profitable land use, particularly where such land lies in a major urban area or contains valuable mining rights. Landowners with a genuine desire to preserve their land may lack the means to maintain valuable land at less than optimal use. Due to these concerns, Congress enacted Internal Revenue Code (“I.R.C.”) § 170(h)(2)(C) to provide tax deductions for taxpayers who donate an easement that is considered a “qualified conservation contribution”. The enactment of a federal income tax deduction for the donation of an easement considered to be “qualified conservation contribution” was essentially a Congressional subsidy to preserve historically and environmentally unique land in its current state, rather than developing the land to a more profitable use. In general, a “qualified conservation contribution”, has the following qualifications and ...

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Will You Lose Your Home Mortgage Deduction In 2013?

Last Friday, I spent a chunk of my day at the Georgia Regional Financial Planning Association conference. I was a panelist at the event, but one of the reasons I attended was to see a friend of mine Michael Kitces speak on all of the tax law changes here in 2013. He is one of the best tax management advisors that I know of in the industry. As I have shared before in my blogs, tax management will be as important if not more important than asset management over the next decade. With all of the recent fiscal cliff changes, the tax law has become even more complicated and requires a close eye here in 2013 when income to tracking your gross income, capital gain sales, and potentially triggering out things like stock options or selling a piece of rental real estate. One of the main questions taxpayers will face this this year is whether or not their home mortgage ...

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Should You Sell Your Business Now?

If you have owned a business for a long period of time and were considering selling, 2012 may be year for you find a buyer to take over your shop.   The Presidential election and many open tax patches/increases loom on the horizon in 2013 which could alter tax rates substantially.   2012 could actually prove to be a much more a favorable year to play let’s make a deal for your business.  Here are four reasons to consider selling your business now. 1.) Historically low capital gain rates –   Currently, we have long term capital gain rate of 15% on most items.    It has been very uncertain where this rate will head in 2012, but 20% at a minimum has been the number thrown about over the past year.    If that occurs in 2013, it will represent a 33.33% increase in your capital gains tax.   The Government will spin it as if it is only a 5% increase, but in really ...

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5 Smart Financial Moves To Start The New Year Off With A Bang

The holiday season brought snow on Christmas Day to the state of Georgia along with some relief around tax breaks that helped both the wealthy and the unemployed. It seemed like everyone’s stocking got a gift or two, but the reality of all these tax breaks will sneak up on us a few years from now. As the New Year gets kicked off, there are some key things you want to be taking action on in respect to your overall financial plan. Rates will not stay low forever – If you have the situation where you can afford to buy a piece of real estate or potentially refinance your home, this would be the time to take advantage of doing that if you haven’t jumped on the wagon already. If you have an adjustable rate mortgage, you should consider getting that locked into some type of fixed rate program. If you cannot refinance and are stuck with a higher interest ...

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