On April 25, David John Marotta discusses details of IRS form 1040 and other tax documents, how you can use your tax return to glean information about your financial habits, and ways to optimize your accounts.
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Tax Planning
A dollar saved on taxes is worth more than a dollar earned. If you earn another dollar, they will just tax you again.
Read More...Tax Season – Wealth Management Carnival #11
With the federal tax filing deadline upon us, here are some articles on little-known tax tips, interesting facts, good advice, and general information about taxes. Some of these are applicable now, and some you might want to store away for next year.
Read More...Keep Working and Hire Financial Professionals
For families with complexity to their finances, hiring a tax professional actually saves them money. Wealth managers bring benefit to such families in the same way.
Read More...Video: Even the Beatles were against highly progressive taxes!
Let me tell you how it will be: There’s one for you, nineteen for me. Should five per cent appear too small, Be thankful I don’t take it all.
Read More...Is 95% of the Trade Imbalance Legal Tax Evasion?
As one of Forbes’s 25 largest fictional companies, Stark International could avoid $4 billion in U.S. corporate taxes with this one simple technique.
Read More...Video: How to Check Up On Your Charity
Maybe it is time you checked up on your favorite charities before making your next gift.
Read More...15 Tax Moves For Right Now. Really?
Do any of these ideas suggest any incentive for the highly productive to continue producing?
Read More...Dwight D. Eisenhower on tax cuts and a balanced budget
“Until the deficit is eliminated from our budget, … there is no end to inflation; there is finally no end to taxation; and the eventual result would, of course, be catastrophe.”
Read More...Is a National Sales Tax Really Fair?
Claims of “fair” or even “regressive” or “progressive” depend very much on what is used as the denominator.
Read More...Let the Income Tax Die at Age 100
The income tax penalizes productivity, discourages hard work, and suppresses investment.
Read More...Earned Income Tax Credit (EITC) Punishes Marriage
The maximum income for a couple is not double what it is for a single person. Your spouse’s income can disqualify you from credits you could have received if you had not been legally married.
Read More...Earned Income Tax Credit (EITC) Marriage Penalty of $3,603
The maximum income for a couple is not double what it is for a single person. Your spouse’s income can disqualify you from credits you could have received if you had not been legally married.
Read More...Earned Income Tax Credit (EITC) Marriage Penalty of $8,400
The worst marriage penalty is for couples earning between $26,000 and $60,000 who have three or more children.
Read More...Trickle-Down Taxation
One of the strange and unintended consequences of targeting the rich with more taxes will be a greater gap between the rich and the poor as employees will shoulder their fair share no matter what.
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Tax on Dividend-Paying Stocks Rising to 74%
With the enormous increase in the taxation of dividends, high net worth investors may be tempted to abandon dividend-paying stocks entirely. This is not necessary.
Read More...Capital Gains Tax is an Economic Monkey Wrench (2012)
Tax on capital gains is scheduled to rise and become much more complex at the end of this year. Keeping your head in the midst of these changes can help your bottom line. Government should tax either the value of an asset or its yield but not both.
Read More...Last Chance for a Roth Conversion during 2012
While Roth conversions will be advantageous for some next year, they are advantageous for nearly everyone in 2012.
Read More...Seven Tax-Planning Strategies to Dodge the Tax Bullet
The victors in the recent election have declared it open hunting season on the rich, which they evidently believe will solve our spending problems. Tax hikes everywhere are aimed at the most productive members of society.
Read More...Mailbox: Disturbed by Romney’s tax computation in California
Personally I think it is a mistake to value supporting the government (taxes) higher than supporting society (charitable giving).
Read More...IRS Notice of Proposed Adjustment for Underpayment/Overpayment (CP2000) for 2010 Roth Recharacterization
Currently the IRS is sending notices to anyone who did a Roth Recharacterization in 2010 asking them to pay as though they kept the entire conversion amount.
Read More...A Progressive Tax Code is Economically Destructive
Most Americans assume a progressive tax code is needed to promote equality and remove some of the burden of other taxes on those with the lowest income. But the progressive nature of the tax code changes behavior in many ways.
Read More...Smart Tax Planning for the Gap Years
Many families seek financial planning advice specifically for retirement. But if they wait too long, they miss an important tax-planning opportunity. A great strategy is to take advantage of the time between retirement and Social Security at age 70, the so-called gap years.
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Tax Planning: Choose the Appropriate Investment Vehicles
Here are some additional tax planning resources regarding choosing the appropriate investment vehicles.
Read More...Tax Efficient Investing
It can be useful to maintain a grid where all of the available asset classes are arranged in order, by tax efficiency and potential return based on time horizon, so clients can clearly see when and where tax-deferral can offer the greatest benefits.
Read More...Are Investment Management Fees Tax Deductible?
I often get asked, “Are investment management fees tax deductible?” The answer is not a simple “yes” or “no.” Like many tax questions, the answer is “It depends.”
Read More...Radio: Tax Planning in 2012
David John Marotta was interviewed on radio 1070 WINA’s Schilling Show discussing tax planning in 2012 and the most important things to do now to prepare for rising taxes in 2013.
Read More...How Does Marital Status Affect Your Federal Taxes?
Laws have always regulated who may marry, the obligations related to marriage and children and whether and how a marriage can be ended. Governments have always put their own social agenda above the pluralism of personal choice.
Read More...Mailbag: I’d like to withdraw money from my IRA to purchase physical silver.
Precious metals will, on average, just keep up with inflation, but your after tax return would mean you fell behind inflation by the 28% tax you must pay.
Read More...Last Chance for 0% Capital Gains Rate
Most infomercials that begin with such urgency are trying to get you to buy something, but in this case I want you to consider selling.
Read More...Capital Gains Tax Rising
Starting in 2013, pending further legislation, the capital gains tax will go up to 20%.
Read More...Double-Taxed Dividends: Going Up
The qualified dividend tax rate is currently at a maximum of 15%, as are capital gains. Starting January 1, 2013, dividend tax rates will go up to the investor’s ordinary income rate.
Read More...How do I allocate investments with captial gains among taxable and traditional IRA accounts?
There is a distinction between existing high capital gains exposure in a mutual fund verses future capital gains you expose yourself to.
Read More...Tax Planning from the 2012 January / February issue of Planning Perspectives
“How can you respond if these new taxes are enacted? One option is to do a Roth conversion so that you can pay taxes now for those retirement funds.”
Read More...Roth IRA Recharacterization 2012: Undoing a Roth Conversion
Nearly everyone is an excellent candidate for a Roth conversion this year. You can always undo part or all of a Roth conversion with what’s called a recharacterization, so you can’t convert too much.
Read More...Roth IRA Conversion 2012: Roth Calculator for Prof. Low Income
Who would have thought that someone earning $10,700 might want to purposefully push their taxable income up to $217,450 this year in order to pay $47,595 more in taxes at these lower 2012 tax rates?
Read More...Roth IRA Conversion 2012: Roth Calculator for Mr. Esq
Who would have thought that someone in the 33% tax bracket now who will be in a lower 28% tax bracket in the future might want to do a Roth conversion at his higher rates now?
Read More...Roth IRA Conversion 2012: Roth Calculator for Ms. Small Business Owner
Who would have thought that someone earning $400,000 might want to purposefully push their taxable income up to $1.2M this year in order to pay $280,000 more in taxes at these lower 2012 tax rates?
Read More...Roth IRA Conversion 2012: Roth Calculator for Mr. Average
Who would have thought that someone earning $75,000 might want to purposefully push their taxable income up to $275,000 this year in order to pay as much as possible at these lower 2012 tax rates!
Read More...Roth IRA Conversion 2012: A Roth Conversion Calculator
Nearly everyone is an excellent candidate for executing a Roth conversion this year. But it is helpful to have a target amount in mind before you begin.
Read More...Roth IRA Conversion 2012: Are You a Good Candidate?
You may be a good candidate for a Roth conversion in 2012 if you can answer “yes” to any of these statements.
Read More...IRA required minimum distributions, charitable giving and Roth conversions
There are three IRA tax requirements and saving techniques which collided recently for a client. I found a solution.
Read More...David John Marotta in NAPFA Planning Perspectives Nov/Dec 2011
An article by David John Marotta on how to glean information from your IRS 1040 tax return was featured in the latest Nov/Dec 2011 issue of NAPFA Planning Perspectives.
Read More...Who Pays For Corporate Taxes?
“We tax cars, land and corporations. It is a good thing that people don’t have to pay them!”
Read More...Video: Even Investment Losses Can Save You Money
In the process of building wealth, saving a penny on your taxes is just as important as earning a penny in the markets.
Read More...Video: Gifting Appreciated Securities Can Save You Money
Americans are a generous people, and the end of the year is the time of year when most people do their charitable giving.
Read More...Market skid may prompt Roth IRA ‘do-overs’
Marotta’s Roth segregation technique of conversion and recharacterization was featured in InvestmentNews magazine.
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