Long Term Capital Gains: A Common Yet VERY Misunderstood Tax

Long term capital gains (LTCGs) tax is one of the most common tax planning items you’ll have to account for, yet is also the most misunderstood. This short explainer will give you a high level overview of federal tax calculations and show you how LTCGs is applied. Before we jump into a few examples, let’s […]

Planning for 2022: The IRS Has Increased Several Key Deductions and Exemptions

The spike in inflation we’ve seen this year has impacts beyond having to pay more for goods and services. The IRS uses consumer price inflation (CPI) to determine certain increases to exemptions and deductions for federal tax purposes. These are automatic and calculated from the rise in CPI. That means that the increased inflation this […]

Charitable Giving? Consider a Donor Advised Fund

Donor advised funds: Tax Benefit, Growth, and Control Donor advised funds have been around for decades, but they’ve only become wildly popular vehicles for charitable giving over the last several years. They offer immediate tax benefits as the assets or funds in the donor advised fund convey a tax deduction in the year in which […]

Saving: Pre tax vs. after tax – Which one is better for you?

This is by far one of the most common decisions you will have to make when setting up a plan for saving your hard earned money. You (typically) have a choice of making current year pretax (i.e. tax deductible) savings versus making after tax savings. Pretax contributions are great because you get the tax deduction […]

Alternative Minimum Tax (AMT)

In the late 1960’s there were about 155 high income families that were paying zero federal income taxes due to a number of legal tax credits and deductions. Congress at the time thought that wasn’t fair and decided to add in an additional way to calculate your federal income tax. This new calculation resulted in […]