Another way to minimize the effects of the NIIT is to delay income, such as year-end bonuses or capital gains, to stay below the threshold in a given year, says Carey. Investors can also use the strategy of harvesting capital losses to offset taxable gains and lower their MAGI. "Another...
Lots of business gets done that way…the Albuquerque Journal pointed out that over a third of households in the city either avoid banks entirely (the “unbanked”) or else keep a checking account but do much of their business through cash, check-cashing shops, pawn shops, money orders, and...
The Tax Court recently calculated the fair market value (“FMV”) of life insurance policies distributed by a terminated 419 welfare benefit plan. The FMV of the policies—which must be included in the taxpayers’ income—was determined by the court based on: (1) surrender charges, (2) con...
But with the dependancy ratio of workers to retirees set to hit 50% by 2050, some experts are warning this will soon need to rise to 71. Such moving targets aren’t just frustrating for older people who are close to cashing in their workday chips. They also make it very hard for you...
8.Fixed Amortization method– in this method, you calculate your Equal Payment based on one of three life expectancy tables published by the IRS. 9.Fixed Annuitization method– this method uses an annuitization factor published by the IRS to determine your Equal Payments. ...