October 24, 2014

Five Lessons from the Whiskey Rebellion

Protest

The Whiskey Rebellion established the sovereignty of “we the people” to tax and oppress any selected group.

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Appreciating Donor Advised Funds

Wrapped Gifts

There are five ways that both you and the government could make charitable giving more significant.

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AAII 2014

David John Marotta presenting

The articles associated with David John Marotta’s presentation at the DC Metro chapter of the American Association of Individual Investors.

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Video: Virginia’s Neighborhood Assistance Program Tax Credits

Early Bird Gets the Worm

This video discusses Neighborhood Assistance Programs, and how donating to a local charity can both help people in your area and help you with your Virginia tax bill.

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Mailbag: Can I Roll My IRA Into A REIT Tax-Free?

Can I Roll My IRA Into A REIT Tax-Free?

A reader asks, “My wife has a $250K SEP IRA earning 1.5% interest. Can we use any of the funds for real-estate investments?”

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Taxes on Non-Deductible IRA Contributions

Coffee and Cream

“Once you put cream in the coffee, all coffee removed from the cup is partly cream and partly coffee.”

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Fourteen Ways to Avoid Paying Capital Gains

Like water for money

The capital gains tax traps wealth in an investment vehicle requiring special techniques to free the capital without penalty.

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What is a 1031 Real Estate Exchange?

What is a 1031 Real Estate Exchange?

In our article “Fourteen Ways to Avoid Paying Capital Gains Tax”, we wrote about 1031 like-kind exchanges as a powerful tax-minimization tool for investors and business owners. Despite their complexity, these exchanges have the potential to save vast amounts of money.

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Capital Gains Tax Gets More Complicated

Holding breath

Now you may pay one of at least four different capital gains rates. The strategies to deal with capital gains differ for each level.

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What is the Difference Between AGI and MAGI?

What is the Difference Between AGI and MAGI?

MAGI is a common tax term to denote the resulting value of your adjusted gross income (AGI) with some items added back in. However, each use of MAGI may have different variables added back.

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Mailbag: How Do You Live When You Are Trying To Avoid Taxes?

1040 Form with Pencil

Having sufficient assets in a taxable account can allow for tax planning.

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The Tax Code’s War On Marriage

Marriage Penalty

Two different people can end up with very different amounts of tax owed, simply because of their marital status. You cannot argue this increased tax is their “fair share” simply because they are married.

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Virginia Neighborhood Assistance Program Tax Credits Coming Soon

empowerment

Church Hill Activities and Tutoring is one example of the many charities that are granted tax credits to share with donors.

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Realize Some Capital Gains Each Year To Keep Taxes Low

Monopoly Stock Sale

There are at least four different capital gains tax rates. Here’s how to minimize yours.

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What Do You Mean I Owe An Extra $100,000 In Taxes?

Businessman Target

Ah, the joys of being a small business owner in 2013.

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Gift Tender Offers To Charity To Avoid Capital Gains Tax

Gift with Yellow Bow

This technique can avoid paying any tax, a savings worth up to 36.1%.

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Tax By Inflation

The Fading Dollar

In its simplest form, the government prints money and uses the newly printed currency to fund government spending.

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Every Business Should Start a 401(k)

Small business owners

The president’s hope to restrict the plans should actually make owners more interested in creating one.

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How To Report Backdoor Roth In TurboTax

Turbo Tax Backdoor Roth

How to report a backdoor Roth in Turbo Tax.

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2014 IRA & Roth Contribution Limits

2014 Retirement Plan Contribution Limits

Plan to max out your retirement contributions for 2014 — your future self will thank you.

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2014 Employer-Sponsored Retirement Plans

2014 Empoyer-Sponsored Retirement Plans

It’s important to know the limits so you don’t over-contribute and incur tax penalties, but contribute just the right amount (based on your income) for your future standard of living.

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How Long Should I Keep Financial and Tax Records?

Tax Files

Whenever the IRS challenges you, the burden of producing evidence that your claims are true rests entirely with you.

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The Ruse Of Healthcare To Justify Massively Higher Taxes

Rich Men Rule

At least there will be less rich people to hate.

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2013 IRA & Roth Contribution Limits

Retirement plan contrib limits 2013

There’s still time to make sure you’ve maxed out your retirement contributions — your future self will thank you.

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How to Calculate An Advisor’s Value: Tax Efficiency

Chess White Pawn

A dollar saved on your taxes is better than a dollar earned which causes you to pay more tax.

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Rules For Selling Highly Appreciated Stock

hurdle tables

Now that the Bush tax cuts have expired and Obamacare will add additional tax burdens, many people need to think twice before realizing a large gain on their investments.

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How to Make Money Paying Virginia Income Tax

Will pay taxes for money.

Don’t hesitate to take advantage of this tax code oddity.

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NCEF Seminar in Charlottesville: “Tax Planning for Seniors”

Tax Form 1040

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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IRA Cap Gives Rise to New Funding Strategies

Be Outraged And Fund Your Roth

President’s proposal comes with silver linings for shrewd advisors

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Tax Planning

Dorothy and Toto 1040

A dollar saved on taxes is worth more than a dollar earned. If you earn another dollar, they will just tax you again.

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Tax Season – Wealth Management Carnival #11

Carnival - Taxes

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.

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Keep Working and Hire Financial Professionals

How To Build Wealth

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.

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Video: Even the Beatles were against highly progressive taxes!

Taxman

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.

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Is 95% of the Trade Imbalance Legal Tax Evasion?

Stark International

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.

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Video: How to Check Up On Your Charity

Marotta Youtube

Maybe it is time you checked up on your favorite charities before making your next gift.

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15 Tax Moves For Right Now. Really?

1040-2013

Do any of these ideas suggest any incentive for the highly productive to continue producing?

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Dwight D. Eisenhower on tax cuts and a balanced budget

Dwight D. Eisenhower

“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.”

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Is a National Sales Tax Really Fair?

Fair Tax

Claims of “fair” or even “regressive” or “progressive” depend very much on what is used as the denominator.

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Let the Income Tax Die at Age 100

Income Tax

The income tax penalizes productivity, discourages hard work, and suppresses investment.

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Earned Income Tax Credit (EITC) Punishes Marriage

Wedding Couple

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.

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Earned Income Tax Credit (EITC) Marriage Penalty of $3,603

Wedding rings and money

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.

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Earned Income Tax Credit (EITC) Marriage Penalty of $8,400

Wedding rings and money

The worst marriage penalty is for couples earning between $26,000 and $60,000 who have three or more children.

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Trickle-Down Taxation

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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Financially Savvy Kittens on Gifts to Charity

Financially Savvy Kittens on Gifts to Charity

This kitten gifts appreciated stock. Be more like this kitten.

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Tax on Dividend-Paying Stocks Rising to 74%

2013 California Dividend Taxes

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.

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Capital Gains Tax is an Economic Monkey Wrench (2012)

15 mph

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.

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Last Chance for a Roth Conversion during 2012

Last Chance for a Roth Conversion 2012

While Roth conversions will be advantageous for some next year, they are advantageous for nearly everyone in 2012.

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Seven Tax-Planning Strategies to Dodge the Tax Bullet

1040-2013

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.

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Mailbox: Disturbed by Romney’s tax computation in California

Disturbed by Romney's tax computation

Personally I think it is a mistake to value supporting the government (taxes) higher than supporting society (charitable giving).

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IRS Notice of Proposed Adjustment for Underpayment/Overpayment (CP2000) for 2010 Roth Recharacterization

IRS CP2000 Notice

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.

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