The thresholds for each tax rate are adjusted annually for inflation. The IRS has released the 2023 thresholds (click here for the 2023 inflation adjustments). Given the high inflation rates of late, the thresholds will increase at a greater rate for 2023 than they have in recent years. This is good for taxpayers, since itRead more…
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Capital Gains Tax Blog Series 5: Updates for 2023
November 29, 2022Series 4: Tax Loss Harvesting and Carryover of Capital Losses
November 9, 2022What if you lose money on your investments? A tax loss can be a valuable asset if you use a strategy called “tax loss harvesting,” which is based on the ability to offset capital gains with capital losses so that you only pay tax on your net capital gains. However, there’s a certain sequence youRead more…
Series 3: Capital Gains Tax Rates
November 2, 2022Long-term capital gains are subject to lower rates of tax than short-term capital gains, which are taxed at ordinary income tax rates. You therefore need to know your holding period for any capital asset you sell. If you hold an asset for more than one year, the gain you realize when you sell it willRead more…
Series 2: When are Capital Gains Taxed and How to Calculate
October 27, 2022Capital gains are taxed when they’re “realized.” Your capital gain (or loss) is generally realized for tax purposes when you sell a capital asset. As a result, capital assets can continue to appreciate (increase in value) without becoming subject to tax as long as you continue to hold on to them. For example, loans againstRead more…
Series 1: What are Capital Gains?
October 13, 2022Capital gains are the profit you make from selling or trading a “capital asset.” With certain exceptions, a capital asset is generally any property you hold, including: Investment property, such as stocks, bonds, cryptocurrency, real estate, and collectibles; and Property held for personal use, such as a car, house, or home furnishings. There are, however,Read more…
Capital Gains Tax 101: Basic Rules You Need to Know Blog Series
October 4, 2022Introduction Learn the ins and outs of the capital gains tax, which you may owe if you sell stocks, your home, cryptocurrency, a stamp collection, and much more. Billionaire business owner Warren Buffett once famously commented that his secretary paid taxes at a higher rate than he did. Although there are surely many factors atRead more…
Understanding How the IRS Contacts Taxpayers – Avoid Scams and How to Know it’s Really the IRS Reaching Out
September 20, 2022With continuing phone and in-person scams taking place across the country, the IRS wants to help you understand how and why agency representatives may contact you. In most instances, the IRS sends a letter or written notice to a taxpayer in advance, but not always. Depending on the situation, IRS employees may first call orRead more…
Back Up Your Data – The Invaluable Benefits of Remote Backups
September 6, 2022The Importance of Backing Up Your Data Hardware failures. Natural disasters. Theft. User error. Your data isn’t safe! All of these things are notorious for claiming massive amounts of valuable data at any given time. Thankfully, your data can be protected from all of these threats with a backup and disaster recovery plan. One ofRead more…
September is National Preparedness Month
September 1, 2022The IRS urges everyone to update and secure their records to prepare now for natural disasters. September is National Preparedness Month. With the height of hurricane season fast approaching and the ongoing threat of wildfires in many places, the Internal Revenue Service urges everyone to develop an emergency preparedness plan, or if they already haveRead more…
1099-K Changes: How Will This Affect Your Side Hustle?
August 9, 2022There are many different variations of the 1099 form, but the 1099-K is a tax form that shows all the payments you received through a credit or debit card or some other electronic payment system (these are also known as “third-party payment settlement entities” or PSEs . . . Yeah, that’s a mouthful). Some ofRead more…