4 results for tag: Ordinary Income

2021 Last-Minute Year-End Tax Strategies for Your Stock Portfolio

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo The Basic Strategy: Avoid the high taxes (up to 40.8 percent) on short-term capital gains and ordinary income. Lower the taxes to zero—or if you can’t do that, then lower them to 23.8 percent or less by making the profits subject to long-term capital gains taxes. Think of this: you are paying taxes at a 71.4 percent higher rate when you pay at 40.8 percent rather than the tax-favored 23.8 percent. And if you can avoid that higher rate with some easy adjustments in your stock portfolio, doesn’t it make sense to ...

Is a Property Fix-up and Sale an Investor or a Dealer Property?

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Background I’m an independent computer consultant who nets $100,000 from my proprietorship. I bought a house in March 2019, fixed it up, and sold it in April 2020 at a net profit of $85,000. I bought another house in May 2020, fixed it up, and sold it in June 2021 at a net profit of $125,000. Question These are my first two properties. Does the IRS consider me a real estate dealer or a real estate investor? Answer This is a tough call. If you keep doing this, you will be a dealer, without ...

2020 Last-Minute Year-End Tax Strategies for Your Stock Portfolio

When you take advantage of the tax code’s offset game, your Stock Market Portfolio can represent a little gold mine of opportunities to reduce your 2020 income taxes. The tax code contains the basic rules for this, and once you know the rules, you can apply the correct strategies. Here’s the basic strategy: Avoid the high taxes (up to 40.8 percent) on short-term capital gains and ordinary income. Lower the taxes to zero—or if you can’t do that, then lower them to 23.8 percent or less by making the profits subject to long-term capital gains. Think of this: you are paying taxes at a 71.4 percent higher rate when you pay at 40.8 ...

2020 Last-Minute Year-End Tax Deductions for Existing Vehicles

It's the last week in November 2020 and it’s time to examine your existing Business and Personal (yes, Personal) Cars, SUVs, Trucks, and Vans for some profitable Year-End Business Tax Deductions. In this article, let’s first look at your prior and existing business vehicles that you or your pass-through business owns. Then, we will take a look at your personal vehicles as a possible source for a last-minute tax-saving deduction. Let's start with prior and existing business vehicles. Your first step is to identify your gain or loss on a sale. Once you have or know what the gain or loss is, know these basic rules: Gains attributable ...