Tax Strategies Scan: Less Taxing Investments for Your Clients

Thursday, June 11, 2015 Print Email

8 smart mid-year tax moves to pocket more money:

As per Kiplinger, clients receiving heavy refunds every year are recommended to adjust their withholding in order to save taxes in the coming year. A review of contributions made towards their plans under 401(k) and reimbursement/ flexible spending plans is required. They also need to evaluate portion of their investment portfolio that is taxable. To avoid tax penalties, taxpayers getting seventy and half years old this year are required to take ‘Required Minimum Distribution’ (RMD) from their Individual Retirement Accounts and other such plans. For those taxpayers who are looking for more tax savings consider paying their credit card bills using home equity and check if they are eligible for tax breaks by evaluating their tax circumstances.

How to make your investments less taxing:

As per Fox Business, Investors can substantially reduce their tax liability by harvesting tax-loss during the year. This can be done be selling loss making securities and adjusting these losses against the gains realized from sales of winning securities. For big investors, possessing huge taxable investments, such strategies are very important.

Assessing the tax treatment of options trading:

According to Forbes, taxation of option can be complicated specifically when it is used to in complex trades offsetting different positions. Taxation of straightforward option trades can be simple whereas for complex transactions triggering a number of IRS (International Revenue Services) rules designed to hold taxpayer from avoiding any tax liability. One of the ways to determine tax treatment of options is to figure out tax treatment of its underlying financial instrument.

Start saving on your 2015 taxes now:

According to Time Money, clients are requested to initiate their tax planning as soon as possible so they can avoid the tax-filing season hassle and save their money and time. Larger charitable donations, increased contribution to retirement plans and harvesting of tax-losses are few of the effective tax planning strategies.

Source: ReadyRatios

Login to ReadyRatios


Have you forgotten your password?

Are you a new user?

Login As
You can log in if you are registered at one of these services: