If you are affluent or will be in the future, taxes are or will become one of your biggest expenses — maybe the biggest. And probably getting bigger, depending on how much of President Biden’s tax plan gets through Congress.
Put another way, tax planning means deferring and/or avoiding income taxes by taking advantage of beneficial tax-law provisions, increasing and accelerating deductions and credits, and generally making maximum use of tax breaks available under our beloved Internal Revenue Code. While I think some of Biden’s proposed tax increases won’t get through Congress, some might. High-income folks in general, high-income investors, and investment real-estate owners are most likely to be impacted.
Exhibit A You are a 40-year-old professional. You consider yourself to be financially astute, but are not well-versed on taxes. One day, you meet the love of your life. Shortly thereafter, you get married. Conclusion: Tax considerations aside, selling your home probably made good sense. However, selling without considering the tax-smart alternative probably cost you at least $50,000, due to a completely avoidable $250,000 gain taxed at an assumed combined federal and state rate of at least 20%. That $50,000 tax hit is a permanent difference, not just a timing difference. Ouch!
Why? Because 20% was automatically withheld for federal income tax. This is mandatory when the check is made out to you personally. Ugh! Now you cannot accomplish a totally tax-free rollover unless you somehow come up with the “missing” $40,000 and deposit that amount — along with the $160,000 you have in hand — into your rollover IRA within 60 days.
wow
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Don’t cry for tax havens, Cayman IslandsThe Caribbean region has been a shelter from levies for hedge funds and other investment firms. Many of those perks may remain even with a global deal. And caveats – from the UK to Switzerland – suggest that the ambitious multinational plans will be weaker than its headline.
Source: Breakingviews - 🏆 470. / 51 Read more »
Families with kids would benefit most under Biden's proposed tax changes, report findsAt the same time, the wealthiest 1% of households will take on 'nearly all' of the tax increases in the American Jobs Plan and American Families Plan.
Source: CNBC - 🏆 12. / 72 Read more »
Europe’s Carbon Border Tax Plan Looms Over Global TradeEurope is preparing legislation that would jolt the rules of international trade by taxing imported goods based on the greenhouse gases emitted to make them, a plan that has unsettled big trading partners such as the U.S. If only this was well intentioned. $100 says China gets an exception.... So I think we can say any products made from naturally occurring bovine are basically fucked?
Source: WSJ - 🏆 98. / 63 Read more »
Non-tax filer families will soon be able to sign up for the enhanced monthly child tax creditThe IRS is launching two portals, expected in June, that will allow families to sign up for monthly child tax credit payments or update their information. acorns good luck acorns Sure why not. Socialism and welfare for all!!! Biden’s America acorns Wait, if they are not filing taxes, why are they getting a tax credit? It’s a literally a credit for paying in taxes but yet still not making enough. I guess i don’t understand why you need a tax credit if your not filing to begin with.
Source: CNBC - 🏆 12. / 72 Read more »
India is well placed to fight G7 tax deal’s flawsThe country wants to charge big tech companies on the basis of local revenue or users, rather than profit. A rich-nation plan offers little on this front. India’s 1.3 bln population and relative openness to foreign companies give it good ground to push for fairer digital levies.
Source: Breakingviews - 🏆 470. / 51 Read more »
Biden and G-7 leaders will endorse a global minimum corporate tax of at least 15%The Global Minimum Tax represents a concrete step for the Biden administration towards the goal of crafting a 'foreign policy for the middle class.' Let’s hope he addressed the Fiscal Paradises ,Tax Havens and the protectorate overseas British territories left lawless for a very long time . And it will never happen
Source: CNBC - 🏆 12. / 72 Read more »