The 2 Out of 3 Tax Rule

Key Takeaways

  • There are 3 tax benefits you can take advantage of when considering investments.
  • Most investment assets can take advantage of 2 out of the 3 tax benefits which are tax deductibility, tax deferment, and tax free.
  • Investing in one of these tax benefit type accounts can significantly increase your returns over time versus investing in a taxable asset.

Last-minute Tax Reminders

6 year-end tips to consider

Key Takeaways

  • Before year-end, accelerate your charitable contributions and pay real estate taxes, state income taxes and deductible medical expenses early.
  • Always consult with a trusted advisor before pulling the trigger on any of the year-end tax tips below.
  • Look for capital gains in the 0 to 15 percent tax bracket and take advantage of the $14,000 annual exclusion on gifts to children and grandchildren.
  • If you’re a business owner, accelerate your operating expenses and highly depreciated capital expenditures.

Hidden Benefits in the Sharing Economy

Key Takeaways

  • 34 percent of the workforce is now doing independent, self-employed work—up from 6 percent 20 years ago.
  • The majority of workers in the sharing (gig) economy are NOT taking advantage of all the saving and tax mitigation benefits they’re entitled to.
  • A Solo 401(k)/Profit Sharing Plan can help many sharing economy workers save for retirement and reduce their taxable income.

IRS “Dirty Dozen” 2016 Tax Scams

Key Takeaways

  • There are three tax systems in the U.S.: one for the informed, one for the uninformed and one for the ill-informed.
  • Before you file, make sure you review the IRS’s “Dirty Dozen” list of tax scams for 2016.
  • An experienced and vetted tax preparer will not only prepare your return the right way, but also can help you avoid being duped by tax scammers.