By month: December 2023

How to Beat and Mitigate the Net Investment Income Tax (NIIT)

You are more likely to owe the net investment income tax (NIIT) this year. And the government has made sure that you will have an even better chance next year. It’s sad that this built-in tax increase has been going on every year since 2013. But here’s some good news: with good planning, you can beat or at least mitigate the NIIT.

Businesses and Rentals Existing on Jan. 1 Trigger FinCEN Filings

The Corporate Transparency Act goes into effect on January 1, 2024. This law imposes a new requirement for federal filing on or before December 31, 2024, for most existing corporations, limited liability companies, and limited partnerships, and many other types of business entities. Failure to comply can result in hefty monetary penalties and up to two years in prison.

Beware of the Dreaded Wash Sale Rule When Harvesting Tax Losses

You generally think of harvesting tax losses at the end of the year—and that’s a good year-end strategy. But the real deal is to harvest tax losses when they need harvesting. For example, you know you’ll need tax losses in 2024 to offset big gains. Harvest those losses when they’re available—say, in January or July 2024.

Is “Don’t Die with Capital Loss Carryovers” a Good Rule to Live By?

Learn how Revenue Ruling 74-175 can lead to improper application of the popular tax-planning statement “Don’t die with capital loss carryovers.” Learn how Revenue Ruling 74-175 can lead to improper application of the popular tax-planning statement “Don’t die with capital loss carryovers.”

Adjusting for the New Retirement Plan Catch-Up Contribution Rules

SECURE 2.0 created a bevy of friendly catch-up contribution changes for employees ages 60-63. That’s the good news. The bad news is that SECURE 2.0 does not aim to treat employees with incomes greater than $145,000 in an equally friendly manner.

IRMAA Tags Recreational Gambler with Big Medicare Premium Increase

If you are on Medicare and you gamble, there’s a good chance that your gambling increases your cost of Medicare, even when you lose money.

Deducting Start-Up Expenses for a Rental Property

If you purchase a rental property to begin a new rental business, many of the costs you will incur before the property is offered for rent are classified as start-up expenses for tax purposes. There are strict limits on how and when you can deduct these costs

Tax Road Map for the Foreigner Who Wants to Start a U.S. Business

You can open a business in the United States if you are a non-citizen. But beware: you travel a perilous tax and reporting path when you know little or nothing about the territory. Here’s a tip: follow this road map for successfully launching your U.S. business.

Bedroom Rental—Five Possible Outcomes You Need to Know

Do you have a bedroom rental in your home? If so, make sure to know the five possible federal income-tax outcomes from such a rental.


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