Tax Rules

It’s hard to know… but I bet I’m not the only one looking at my compensation differently.

To avoid the 10% penalty, do I have to satisfy the 5-year holding period for my Roth conversions if I’m over age 59 1/2? The IRS is not very clear when it comes to when you need to pay penalties on Roth IRA withdrawals, but I think I know the answer.

Here are 8 reasons you’d want to lower your AGI and 8 methods to lower your AGI.

Like how diner coffee gets more bitter as the waitress tops off your cup with more coffee from the pot, so too the growth on your nondeductible assets increases your tax owed by decreasing the percent post-tax assets in your cup.

Yikes! This is a costly mistake.

The 27 lines, because they are so simplified, end up being difficult to follow what exactly they do. So, for those of you who are curious, here’s what they do.

You can’t touch the earnings on your contributions until you’ve had an account open for 5 years and you’re either over age 59 ½ or you meet special exceptions.

Dividends and interest received from U.S debt obligations can be deducted on many state tax returns.

The key to getting the waiver though is showing that “you are taking reasonable steps to remedy the shortfall.”

David John Marotta was interviewed on radio 1070 WINA’s Schilling Show discussing corporate tax rates, and why they should be lowered.

The rules for post-70 ½ IRA contributions depend upon whether the account is a traditional IRA, Roth IRA or SEP IRA.

The IRS has a rule that if you are doing a rollover for a 401(k), you have 60 days to complete that process. But what if you experience a tragedy and can’t finish on time?

With many types of retirement accounts available, it can be difficult to keep track of how much you can put away where, especially if you are eligible to contribute to multiple accounts.

The IRS does not require dependents whose gross income is only earned income to file a tax return if the amount is less than a certain amount.

We know how federal rules require you to either have tax withheld or make estimated payments of tax that will be due, but it is easy to forget that states have their own revenue departments and their own rules.

The estate tax return is definitely complex, but that’s because it has to account for the multitude of special rules that only apply to a few households.

The fact that we have an 80% “generous grandparent” tax is ridiculous.

SEP plans offer a powerful way to provide for your own retirement in the same way that 401ks do.

Using a 1031 exchange to turn investment property into residential property is possible, but it takes careful planning from the outset.

Here are the four criteria which must be met in order for margin loan interest to be tax deductible.

Without the burden of federal, state, and local taxes, you could leave your job at 2:27pm every day and earn the same salary.

David John Marotta was recently interviewed on radio 1070 WINA’s Schilling Show, discussing taxation and the burden of government.

The IRS does not do a good job of helping people understand capital gains taxes. They provide a worksheet to help you calculate it, but it has so many steps that it’s nearly impossible to figure out what’s going on.

Wash sale rules need to be followed when realizing capital losses for taxes but can be burdensome to track and monitor.

There are some cases that are not as straightforward and if you fall into these categories, you might not know whether or not you are allowed to contribute to a Roth IRA.

More than many other candidates, Ted Cruz’s tax plan aims to fundamentally change our tax system.

If you have not yet funded your Roth account for 2015, it is not too late!

The Internal Revenue Service (IRS) is notorious for misunderstanding the recharacterizations of Roth conversions.

Contrary to the normal way of things, this time what Uncle Sam gives with the IRS, he takes away with the SSA.

1031 exchanges can include “boot,” which is an unofficial term for other property received in the exchange.

David and host Rob Schilling discuss what estate planning is, why you want to do it, and explain some of the jargon.

How do you handle unexpected income that happens late in the year?

The backdoor Roth strategy involves contributing after-tax funds to a traditional IRA.

The kiddie tax was first added to the tax code in 1986 for children under age 14. Now, it can burden them until they are 23.

The beauty of trusts is that they are very flexible, and an estate lawyer can help you craft a document that will follow your wishes and give you peace of mind.

In a 1031 exchange, the cost basis of the property you give up is rolled into the new property you receive.

Any tax which is ultimately going to be owed is owed by April 15th. Otherwise it may be subject to interest and penalties.

Because 1031 exchanges are a great way to defer paying large amounts of capital gains tax, the IRS tends to be suspicious of them.

Bush’s tax plan is in good company with Trump, Rubio, and Lee. It hits many common Republican talking points but doesn’t seem to take its own reasoning very seriously.

You can only contribute to your Roth IRA if you have what the IRS calls “earned” income. This makes it all the more important to contribute to your Roth IRA every year you can.

Tax season under Trump’s plan would likely be just as complicated but slightly less painful.

I’m on the borderline for being able to contribute to a Roth IRA. How do I determine how much I can contribute?

Regardless of the reason, if you have put too much money in your Roth IRA, the solution is the same.

I have earned income but my wife does not. Can I contribute to my wife’s Roth IRA?

Is each dollar value the average for that category or is it really the average for a family with $88,871 in annual income?

The calculations for this are a little strange. Here is the formula and two examples of how it works to help you.

The terminology is a little confusing, but you are allowed to have and contribute to both individual retirement accounts and employment-related retirement accounts.

2016 Presidential hopeful Rand Paul has released a sketch of an intriguing tax plan.

You have 3 basic options, but whichever option you choose, do not lose track of the accounts you own.

Roth IRAs can only be funded with earned income and therein lies the confusion.