Tax Season, The Buffet rule, Mitt Romney’s taxes, and more!

Click below to hear Win Damon and I talk about the end of the tax busy season, the buffet rule, Mitt Romney’s tax returns, what it all really means, and other fun news and financial topics of the day.  Listen on WNBP 1450 AM in Newburyport and wnbp.com every Tuesday morning at 8:30!


 

April 15th means tax PAYING time, NOT filing time!

For many people, April 15th is a panic time.  Running to the post office, all the media outlets chatting about the filing deadline.  Well guess what?  It is NOT the filing deadline.  That is October 15th for individual taxpayers.  April 15th is the day to settle up (approximately) your balance due for 2011!  It does not mean you need to actually file your papers, and in fact I prefer to wait to file until May-June (or later) for many of my executive clients.

Please do not stress over filing by the 15th.  Get the education you need and apply it in your particular tax situation. 

Click below to listen to Win Damon and I chat about this very topic in our 10 minute podcast on wnbp.com and AM adio 1450 in Newburyport! Tune in every Tuesday morning as Win and I chat about the financial and tax topics of the day!


ERock Tax Tip – Deduct Long Term Care Services

When an ailing parent or loved one requires in-home care due to a chronic illness, professional care provided by a doctor, nurse, social worker, or even a non-professional care provider may be deductible as a medical expense. These long term care expenses, which can be very costly if not paid by a long term care insurance plan, are deductible above 7.5% of the adjusted gross income of the taxpayer on the Schedule A

Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years.  Please feel free to contact him anytime and let Erock Tax take care of you!

ERock Tax Tip – Gift Money to Family, Friends or Even a Stranger

If you have the good fortune to give large sums money to either family members, friends or even strangers, the IRS allows you to gift up to $13,000 per year tax free to an individual. While the giver has to file Form 709, United States Gift Tax Return, the recipient neither has to report it on their tax return nor pay tax on it. A very nice gift indeed!

Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years.  Please feel free to contact him anytime and let Erock Tax take care of you!

ERock Tax Tip – Keep track of Home Improvements

Keep Track of your Home Improvements

In these days of deflated home values, it is hard to think that we will ever make a profit on our homes when we one day sell them. However, that shouldn’t stop you from keeping receipts from major improvements you make to your home as they increase the basis at which the taxable gain is determined. While the IRS has been very kind to homeowners in allowing single taxpayer to exclude the first $250,000 in capital gains and married filing jointly taxpayers can exclude up to $500,000 in profit from the sale of a primary residence, that loophole may not exist forever. So save those home improvement receipts!

Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years.  Please feel free to contact him anytime and let Erock Tax take care of you!

ERock Tax Tip – Reconvert Your Traditional IRA to a ROTH IRA

Traditional IRA to ROTH IRA!

 

With wild swings in the stock market over the past few years, changing a ROTH account back to a traditional IRA and then reconverting the account back to a ROTH may result in big tax savings. For example, if a taxpayer in the 25% tax bracket has a traditional IRA valued at $100,000 on day X and converts it to a ROTH, he will pay tax on the $100,000.  Let’s say a month later the stock market has lost 10% and the value of the account is now $90,000.  If the taxpayer chose to change the ROTH back to a traditional IRA, waited 30 days and then reconverted it back to a ROTH, assuming the account is still worth $90,000, the taxpayer would save $2,500 in taxes.

Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years.  Please feel free to contact him anytime and let Erock Tax take care of you!Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years.  Please feel free to contact him anytime and let Erock Tax take care of you!

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