Taxes

FICA Limit in 2013 – What’s Changing and Why

December 21, 2012

The FICA Tax that most Americans pay either through our routine W-2 paychecks or through self-employment taxes is set to change in 2013 in a few ways, so I thought I’d get you thinking about what’s coming and how it may impact your personal finances next year.  But first, a few basics: What is the [...]

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Reminder: Wash Sale Rules Don’t Apply to Capital Gains

November 18, 2012

Finance and taxation are inherently intertwined. Investors look for the best returns after-tax, which is why wealthy Americans invest disproportionately more in real estate and municipal bonds (which are rallying since Obama’s win), which provide valuable deductions and tax free federal income taxes respectively. The IRS has rules to prevent investors from taking tax losses [...]

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Interesting Trends in Dividend Stocks, Munis 1 Week After Obama’s Win [CHART]

November 15, 2012

I haven’t done much with my portfolio over the past several months because I anticipated that regardless of who won the election, the fiscal cliff and its associated hikes in dividend tax rates would be resolved in short order and the market shouldn’t react too much one way or the other leading up to it. [...]

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My Roth IRA: Beating the Market and a Look Under the Hood

August 8, 2012

I don’t do individual stock reviews and such these days since I’ve taken more of a passive/low-fee approach over the years compared to active stock-picking (hence my other site ETF Base which is focused solely on ETF investing and strategies). Anyway, what I set out to do years ago was to pick a basket of [...]

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Tax Savings from Trusts

July 3, 2012

In a previous article I went over the very basic overview of what a trust is, and why trusts are used in estate planning. Now let’s focus on something else: tax savings from a trust. Saving on Taxes with Trusts US citizens have an estate tax exemption just for living and breathing. This estate tax [...]

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How Much Would it Take For You to Renounce Your Citizenship?

May 16, 2012

There’s nothing like being an American, right?  I mean, we’re only 5% of the population and enjoy 25% of the world’s GDP (while consuming 25% of the world’s energy of course).  That aside, in general, you don’t see people from around the world flocking to any country but America.  We have a vibrant job market [...]

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Taxes Over? How Does Your Income Stack Up Against Your Fellow Americans?

April 18, 2012

Occasionally my wife will comment on how our house is smaller than our friends’, we drive older cars or whatever. As corny as it starts to sound to her, I always remind her that we’re actually better off than most Americans. And most Americans are better off than the rest of the world. So in [...]

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Senate Rejects Buffett Rule – Fighting Stupidity with Logic

April 16, 2012

Politicians do a lot of stupid things, but this “Buffett Rule” proposed by the administration practically takes the cake.  The measure, named after Warren Buffett for his observation that his effective tax rate was lower than that of his secretary, went to the Senate for vote today and flopped with a 51-45 tally, which shows [...]

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Why I’m Prioritizing a Roth IRA Over a 401(k)

March 27, 2012

Presented with the choice between maximizing contributions to either a 401(k) or a Roth IRA, many people opt for the 401(k). The prospect of “pre-tax” deductions from the paycheck is appealing since those contributions effectively reduce your tax bill each year. Additionally, the 401(k) deductions are totally on auto-drive. The money comes right out of [...]

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The Tax Lie Politicians Love

March 18, 2012

Taxes are good for us, they say. Taxes help pay for the roads, the bridges, and the fire departments across the nation. More recently, taxes have become a way to protect us from ourselves. Higher taxes push us away from all those horrible behaviors that society simply should not have to deal with. Taxes are [...]

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