Net Investment Income Has a Tax Bite

Posted by on May 29, 2014

Did your investments see a big jump in value over the year 2013? Did your mutual fund dump a chunk of capital gains into your tax picture? Even if you leave the capital gains in your investment account you will be taxed on it. While you may be surprised by this additional income, capital gains and qualified dividends or dividends from stocks – do receive a reduced tax rate. That tax rate depends on your Modified Adjusted Gross Income – MAGI. Tips: -To minimize your Capital Gains exposures consider using Mutual Funds that keep their portfolio turnover low. Portfolio turnover...

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Beware of Higher Taxes

Posted by on May 5, 2014

Was your 2013 tax bill higher than you expected? You can probably thank the American Taxpayer Relief Act of 2012. “RELIEF” is a misnomer. Reality is several changes are what tax professionals refer to as stealth taxes – under the radar burdens that are hard to see coming. These stealth taxes primarily affect high income earners. This posting will begin a review of these changes and a refresher of a few other tax laws. The purpose is to give you a big picture of potential tax problems and how your actions like selling a stock, getting a promotion or raise, or exercising a stock option affect...

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