Tax Strategies

When That Tax Document Will Arrive

Here is a quick list of when in the year you will receive certain tax documents:  Form Title Description Source Typically Received By Form W-2 Reports annual wages and taxes withheld from paychecks, including compensation such as bonuses. Employers Jan 31 Form 1099-MISC For reporting payments to freelancers, independent contractors, and other non-employees. Payers who have paid $600 or more Jan 31 Form 1099-INT Form 1099-DIV Form 1099-Composite Documents interest income earned during the year. Banks and other financial institutions Feb 15 Form 1098 Reports mortgage interest (and possibly other mortgage-related expenses) paid during the year. Mortgage lenders Jan 31…
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Navigating Roth Conversions: A Comprehensive Guide

Planning for a secure retirement involves implementing tax smart financial strategies, and Roth conversions stand out as a key player in optimizing tax efficiency and maximizing your wealth. Understanding the intricate considerations behind Roth conversions is crucial for anyone looking to bolster their financial future. This comprehensive guide aims to break down the complexities of Roth conversions into consumer-friendly insights, empowering you to make informed decisions aligned with your long-term financial goals. This post is still under construction but is still helpful as a guide to what topics are important. Anywhere that says "Coming Soon" will have a separate article…
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Donating Appreciated Stocks to Charities

While there are numerous ways to contribute, donating appreciated stocks (stocks that have gone up in price from what you paid) to charities is a strategy that offers significant financial benefits for both the donor and the receiving organization. In this blog post, we will explore the ins and outs of this powerful form of charitable giving.This article is part of a series on the different charitable giving strategies: The Comprehensive Guide to Charitable Strategies – Gilbert Wealth The Basics of Donating Appreciated Stocks When you donate appreciated stocks to a qualified charitable organization, you transfer ownership of the stocks to…
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The Art of Charitable Bunching

Charitable giving is a powerful way to support causes we are passionate about. For most people who give, they do so regularly either on a monthly or annual basis to organizations using cash donations. While these regular donations are a building block to charitable giving, a lesser-known strategy, charitable bunching, can magnify the impact of your contributions. In this article, we will delve into what charitable bunching is, the advantages it offers, essential considerations when implementing it, and who should consider this approach. What is Charitable Bunching Charitable bunching, also known as charitable lumping, is a concept that involves consolidating…
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Rental Property Taxation: The Regular Annual Taxation of Rental Properties

Being a rental property owner can be exciting and financially rewarding, but also challenging. In addition to stress of managing multiple properties, screening tenants, addressing concerns, and juggling the numerous cash inflows and outflows, you have to navigate taxes...Without an understanding of how rental property taxation works, you may be giving up valuable deductions unique to real estate investing and pay more taxes than you should. There are three phases of owning a rental property and each has it's own set of tax rules that you should be aware of. The three phases are:The Start Up Phase: When you obtain a…
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The Comprehensive Guide to Charitable Strategies

Amidst the complexities of modern life, finding a sense of purpose and fulfillment is a quest that resonates with us all. This comprehensive guide to charitable strategies provides a listing of giving strategies to help you unlock the boundless potential of generosity and the transformative power it holds. Whether you're driven by faith, empathy, social responsibility, or a desire to leave a lasting legacy, this guide will equip you with the insights and best practices to channel your resources strategically and support the causes that you believe in. Prior to employing any of these strategies, it is important to consider how…
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How to Calculate Adjusted Cost Basis for a Rental Property

Investing in a real estate property can be a great source of income and capital appreciation while also providing an owner with a tangible asset to take pride in. As any new owner will soon find out, real estate investing has a number of unique tax benefits and considerations. A key element of this tax planning is determining the Adjusted Cost Basis for a property which impacts the overall taxable gain an owner might have when selling the property.For more on the broader tax implications of selling a real estate property, see Tax Implications of Selling a Rental Property – Gilbert…
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The Win-Win Strategy: QCDs and Charitable Contributions

What is a Qualified Charitable Distribution? A Qualified Charitable Distribution (QCD) is a direct transfer of money from an Individual Retirement Account (IRA) to a qualified charitable organization. QCDs have gained popularity in recent years due to their unique advantages for both retirees and philanthropic causes. Unlike traditional withdrawals from an IRA, QCDs allow individuals aged 70½ or older to donate a portion of their Required Minimum Distributions (RMDs) directly to a qualified charity, bypassing taxable income.Qualified Charitable Distributions (QCDs) offer a unique opportunity to impact charitable causes while optimizing your retirement savings positively. By leveraging QCDs, you can enjoy…
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Charitable Giving through a Donor Advised Fund

A Donor Advised Fund (DAF) is a specialized account for designed to facilitate charitable giving. A Donor Advised Fund is a valuable tool to consider for anyone who is charitably minded as it provides a number of benefits such as tax deductions, tax-free growth, and charitable flexibilitye What is a Donor Advised Fund and How Does it Work? Donor advised funds have become increasingly popular in recent years as a way for individuals to manage their charitable giving. These funds allow donors to make a contribution of cash or appreciated assets to a public charity, which then establishes a separate…
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A Healthy Investment: Discover the Surprising Benefits of Health Savings Accounts

Healthcare costs in the United States can be quite high, and managing these expenses can be a significant challenge for many people. Fortunately, there is a financial tool available that can help you save money and invest in your future healthcare needs: Health Savings Accounts (HSAs). This article reviews what HSAs are, their features, and how to maximize their benefits. What are Health Savings Accounts A Health Savings Account (HSA) is a separate account that holds money set aside to reimburse you for qualified medical expenses incurred by you or your family members. Similar to retirement accounts, if you are…
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