Here’s good news if you own a stock portfolio. (And if you’re a reader of the Tax Reduction Letter, I’ll bet you do.) If you know how to play the game, you can turn your stock portfolio into a year-end tax-reducing machine. The basics are really pretty straightforward. Avoid the high taxes (up to 40.8%) on short-term capital gains and ordinary income.Lower the taxes to … [Read more...]
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Take Advantage of Partnership Special Allocations
Operating your business as a partnership can offer real advantages. This is also true for LLCs (treated as partnerships for tax purposes). Why? Because operating your business as a partnership or LLC gives you the right to make “special tax allocations” of tax items among the partners. Read the full article for details What is a special tax allocation? Partners … [Read more...]
Quick Cash: COVID-19 CARES Act Creates Five-Year NOL Carryback
Nobody wants their business to generate a net operating loss (NOL). But if your business is showing an NOL, Congress is currently offering some significant help. You see, when the Tax Cuts and Jobs Act (TCJA) was enacted, it took away your ability to get an immediate cash benefit from your NOL. But the law has just changed! Due to the COVID-19 pandemic, Congress has … [Read more...]
COVID 19: Important Tax Breaks from the CARES Act
___________________________________________________________I hope this issue of the Tax Reduction Letter finds you and your family in good health. Warmest good wishes at this difficult time from all of us at the Bradford Tax Institute.___________________________________________________________ As a response to the terrible COVID-19 pandemic, the government has quickly passed … [Read more...]
Know This About Employer-Issued Incentive Stock Options (ISOs)
Taking advantage of employer-issued incentive stock options (ISOs) can potentially put a lot of money in your pocket. But to come out a winner, you’ll have to make some important decisions. To make them wisely, you’ll need to understand the impact of both the regular federal income tax and the alternative minimum tax (AMT) on your ISOs. Want to find out more about this … [Read more...]