Key Takeaways Consider the tax consequences of traditional versus Roth retirement accounts Aim for a lower Adjusted Gross Income by tapping various income sources Make catch-up contributions to retirement accounts for tax advantages If you’re getting ready to retire, you may be expecting your tax bill will be lower with lower income compared to your […]

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Key Takeaways Think about where to put certain securities to try to reduce your tax burden  Consider tax-advantaged accounts for many fixed-income investments Explore how you can put tax-efficient mutual funds and ETFs in a taxable account Many investors have both taxable accounts, such as bank and brokerage accounts, as well as tax-advantaged accounts like […]

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Key Takeaways Capital losses arise from the sale (at a loss) of a capital asset such as real estate, mutual funds, or shares of stock Depending on their filing status, taxpayers may deduct up to $3,000 of a net capital loss against salary and other income Short- and long-term holdings are treated differently Tax season […]

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Key Takeaways Retirement accounts can be subject to tax penalties if rules aren’t followed carefully Learn some of the retirement account mistakes to avoid  Look to limit penalties by understanding contributions, withdrawals, and distributions Tax penalties usually occur when taxpayers don’t file returns or extensions or make other errors that raise red flags with the […]

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It’s time to run down the changes we will see this tax filing season and what to expect in 2014 and beyond. In 2001, the U.S. Government Accountability Office estimated that 38% of taxpayers reporting a security sale incorrectly reported their taxable gain or loss due to an incorrect cost basis, creating an $11 billion […]

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Let’s test your tax-filing knowledge. Myth or fact? Brokers track your wash sales. Actually, both. It just depends. At its most basic, the wash sale rule prevents investors from taking an artificial loss as a means to lower their tax bill. But the fine print gets more complicated. Now, the wash sale tax rule is […]

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Do the letters OID mean anything to you? How about DIV, INT, or MISC? If your answer was “I’ve seen those letters on a tax form,” congratulations. These are among the designations assigned to 1099s you might see as part of a Consolidated Form 1099. Confused? A little overwhelmed, maybe? That’s understandable; tax forms can […]

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You’ve received your 1099-B and are all set to start filing your taxes. But then you review your form. You notice non-covered cost basis, and some of it is missing. Now what? We’ve got you covered with some information on the essentials of non-covered securities.  The Basics: Covered vs. Non-Covered Non-covered cost basis is the […]

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Brokers are now well into the initial phases of required cost basis reporting—rule changes that forever altered the days when we simply revealed to the IRS each investor’s proceeds on market positions sold and that was pretty much it. Folks just starting their investment journey may not yet have a basis for comparison. Get it? […]

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An Individual Retirement Account (IRA) is a tax-favored vehicle used to invest for retirement. With a traditional IRA, you may be able to deduct your contributions from taxable income, and if you have a Roth IRA, your distributions may be tax free. It’s also true that dividend and interest income earned in an IRA is […]

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