One time chance to put $20k into a Roth?
Usually I don’t like to use words like “tax loophole” or “tax shelter”, but their exists right now a situation where the sun, moon, and Internal Revenue Code have aligned perfectly to create an opportunity to create a permanent tax shelter by way of Roth IRA account(s). See if this applies to you: Currently many people are precluded from contributing to a Roth IRA because of income limits or they are covered by another plan. Further, regular IRA conversions to a Roth IRA have also been restricted to people below certain income levels. The restrictions on conversions lapse on 12/31/2009….
Welcome to California. Now lend us money!
Just last week you may have felt the presence of Arnold and the State legislature rummaging around in your wallet. Effective Nov 1 withholding rates and estimated tax payment requirements increased by 10%. This is not a tax increase they tell us, only a temporary loan from us to them for tax monies that the state will ultimately have to refund to you. Hopefully they will actually refund the excess taxes they are taking, instead of issuing a warrant that the banks will not honor, or simply parking on your refund for an extra month or so, both of which…
Your Tax dollars at work
You should all be familiar with the new tax incentive available for first time home buyers that is set to expire this November 30. The incentive provides for up to an $8,000 tax credit, (that’s real money), for qualifying first time home buyers, and was intended to stimulate the real estate market. Recently the IRS came out and said that they had uncovered a significant amount of fraud by those claiming the credit (I’m shocked, absolutely shocked!). In one case the credit was claimed by a four year old who allegedly had bought his first home…what an enterprising young tyke!…
The Tax Man Cometh
Recently I went fishing on a charter boat out of San Diego. The bite was heating up and Yellowfin Tuna were flying over the rail faster and faster as guys would hook up and yell for the gaff. It was one of those great trips. Then all of a sudden someone said ‘Hey look at this, there’s a shark !”. Sure enough, a Mako shark was chewing on the tuna the guy had brought to the boat. The crew was quick to respond and gaffed what was left of the tuna, but it was too late. The comments that went…
You never call anymore….
Recently I heard this from a fishing buddy who was teasing me since we hadn’t spoken in at least a week. He wanted to rub in a story about great trout fishing at a lake in Montana that he was enjoying while I was here at the office (aren’t cell phones wonderful?).While I was reviewing a client’s individual tax return I was struck by the same thought. Here I could see some missed tax planning opportunities and wasted tax deductions that a little advance work could have helped save, yet I hadn’t heard from this person until well after the…