Saving Taxes in 2016

Key Takeaways

  • Young adults can take advantage of the enhanced child tax credit, the enhanced American Opportunity Tax Credit, and the enhanced earned income tax credit.
  • If you’re over age 50, take advantage of the $6,000 annual “catch up” for your 401(k).
  • Many retirees receive tax-preferred treatment of capital gains. If you are over age 70 1/2, you can also donate up to $100,000 to charity tax-free if the funds are drawn from your retirement plan.

7 Year-End Tax Tips

Key Takeaways

  • Now is when we’re consumed by purchasing and accumulating possessions, but you can save a lot of money by cleaning out your closets and garage and cleaning up your financial statements.
  • Making smart gifts, timing your capital gains, and accelerating charitable pledges and state tax payments can all pay off big in the long run.
  • Before making important year-end decisions, seek out tax counsel, a CPA or firms like ours to see how many of these seven tips below can help you and your family save money.

Taxes Later Is Better Than Now

Key Takeaways

  • Inflation, taxes and transaction costs are often overlooked, but can take a substantial bite out of your long-term wealth accumulation goals.
  • When it comes to paying taxes, it seems natural to defer doing so. But, everyone’s circumstances are different and things change as you go through life.
  • Tax planning is tricky. The rules are complex and change frequently. Review your situation at least once every year with trusted advisors.

Tax Savings Tip – Should you Gift Cash or Stock?


**Check out the accompanying video to this blog post for illustrations on this topic of gifting.

Key Takeaways

  • You may give $14,000 per person every year—$28,000 per person if you’re married.
  • Understanding the difference between gifting cash or stock can save you thousands in capital gains taxes.
  • Couples with above $250,000 AGI now pay approximately19 percent on capital gains, but they pay zero if AGI is under approximately $75,000—that’s key if you’re thinking of helping out on a major purchase.