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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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IRS Rules: .9% Additional Medicare Tax In 2013

With Obamacare kicking into to full speed here in 2013, last week I blogged about the 0% long-term capital gains tax. With so many different tax law changes happening, my fear is some tax-payers aren’t planning correctly and will get stung with an extra bill come tax time. For those individual filers who make more than $200,000 modified adjusted gross income (MAGI) and married couples making more than $250,000 MAGI, it is really important to understand how the additional .9% Medicare Tax will be collected here in 2013. Will your payroll company do this for you? Will you have to do it yourself? Is there a special form to fill out this year? Here it is straight from the IRS Website- BTW, this was about 46 different questions and answers, but I trimmed down the key items for you. (Source for all questions: www.irs.gov) When does Additional Medicare Tax start? Additional Medicare Tax applies to wages and compensation above a ...

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Can You Pay 0% Capital Gains Tax?

Most of us have heard through the major media outlets how tax law changes will adversely affect our overall income taxes here in 2013. It doesn’t take a rocket scientist to realize that when your expenses consistently exceed your revenue, cost cutting alone won’t improve your bottom line. This means that raising various types of taxes will definitely be one strategy to increase revenue in order to pay off the massive U.S. debt. The American Taxpayer Relief Act (ATRA) of 2012 was passed by Congress on January 1st, 2013 and was only a partial resolution to the fiscal cliff; just wait until fiscal cliff part II which will look more like ‘Hangover Part II’, Mike Tyson tattoo and all. While the ATRA did impose more taxes on the upper end of the scale and raised capital gains taxes on the very upper end of the income brackets, there is a unique opportunity for many Americans to look at their overall ...

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Be a Tax Pro! Part II: 5 MORE ways to cut your 2011 personal income taxes

Here are 5 MORE ways to cut your 2011 personal income taxes like a tax pro: 1. Homeowners – accelerate your tax deductible expenses.  Pay your January 2012 mortgage payment and property taxes before December 31, 2011.  You can write off the interest and taxes in 2011.    2.Take advantage of the 0% tax rate on long-term capital gains and dividends.  If you can keep yourself below the 25% income tax bracket, the profits on assets owned for more than a year and dividends are tax free. 3. Use tax credits to mitigate state income tax liabilities.  There are various tax credits that can be used to avoid some or all state income tax.  Some can be generated by a business, some can be purchased, and some are based on taking an action that is supported by the government.  4.Pay your state income taxes early.  Estimate your state income tax liability to the best of your ability and pay it on ...

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