fbpx

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 ...

Read More →

Personal Finance 101 – The Tax Management Triangle

Don’t you wish that you had a crystal ball to know what the tax rates will be 20 years from now?   In 1970, the top tax marginal tax rate was at 70%.   In 1980, the top marginal tax rate was still at 70%.   In 1990, the top marginal tax rate hit a historical low of 28%.   In 2000, that top marginal tax rate had moved back up to 39.6%.   Just one year ago in 2010, the top marginal tax rate settled at 35%. (source: taxfoundation.org)  With all the uncertainty going on with our debt and taxes, how can you best plan your finances for the certainty of uncertainty when it comes to income taxes? Over the years, we’ve adopted a tax triangle methodology around taxes and investing.  This allows an individual investor or business owner to think about where they place their investments and tax strategy upon the accumulation and distribution phase.  Here are the three sides to the triangle. ...

Read More →

Can I Convert My 401(k) To A Roth 401(k)?

This past week Congress passed the Small Business Jobs Act Of 2010. While there were many interesting parts to the bill including changes to how employee cell phones are viewed and accelerated write offs for business owners, one of the very intriguing parts to the bill is the conversion of your existing 401(k), 403(b), or 457 retirement plan. If your employer has a Roth 401(k) provision, (which if they do not currently you should really complain to your HR or Benefits person) you may be eligible for a potentially good long term tax management idea. Generally your employer must have a Roth 401(k) source in the plan, allow in-service withdrawals, allow rollovers, and have the Roth provision in the plan to be able to take advantage of a conversion. 2010 is an especially meaningful year because no matter what level your income is this year, you can convert some or all of your 401(k) (403(b), 457) over to a Roth ...

Read More →

Top 10 Questions to ask your Accountant

How long have you been in practice?  Are you a CPA? Will you or someone else in your firm be working on my situation? Do you have a specialty? Are you licensed to offer any financial products? Do you have any formal or informal relationships with other professionals or institutions that I should be aware of? Do you offer advice on tax strategy? How many of your clients have been audited by the IRS?  Results? How many clients do you serve?  Your firm? Do you work with any small business owners? Can you provide me some referrals of satisfied clients? Kile Lewis, CRPC® Co-CEO and Founder oXYGen Financial, Inc. Request a FREE consultation: www.oxygenfinancial.net Related Articles – Top 10 Ways To Tighten Up Expenses For Business Owners, Top 5 Insurance Policies To Avoid , TOP 10 Atlanta LATE NIGHT Restaurants, The Top 10 Most Overlooked Tax Deductions , Top 5 Ways to Help Someone Who Is Unemployed oXYGen Financial, Inc. ...

Read More →

Should You Convert Your Roth IRA?

Hey folks, I’ve got a news flash for you. Going into October, it isn’t just football season, it’s recharacterization season. While most of you are worried about the stock market, I hear individuals and businesses talk everyday about what they should do with their money. (i.e. should I put it in the market, should I put it in a bank account, where is the best place that I should put my money?). The reality is right now, you can’t always think about your portfolio, but also you have to start think about tax strategy. With that being said, for folks out there that make less than $100,000 adjusted gross income, you’ve got the ability to do what’s called recharacterizing your IRA. What this would give you is the ability to do if you make under $100,000 in adjusted growth income is to take your existing IRA and put it into a Roth IRA. There is a handful of legislation that ...

Read More →