The Confusion of Mortgage Interest Deductibility

Tax Planning

The Confusion of Mortgage Interest Deductibility

When clients provide me with a mortgage interest statement, they assume that all of the mortgage interest will be tax-deductible. This assumption was somewhat true under the tax laws before 2018, but since 2018, it will be true only on occasion. To understand why, you must comprehend the definition of acquisition indebtedness.    Acquisition indebtedness is…

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Charitable Giving in Light of the New Tax Law

There is a new tax law that has changed everything for a while. One of the biggest changes is the new expanded standard deduction and the elimination of many itemized deductions. Before we discuss these changes, a good understanding of the standard and itemized deductions is necessary. The standard deduction is a reduction of taxable…

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The Tax Withholding Paradox

It is true that most people will see their income tax rates lowered in 2018, but is it possible that despite having their rates lowered, some may actually owe more in income tax? The answer, unfortunately, is yes, given that there were many significant changes to the tax code for the first time since the…

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The Most Underused Benefit in the IRS Tax Code

The IRS Tax code is not typically known for offering a free lunch. However, there is one type of account out there that many people have heard of but don’t fully understand how beneficial it can be. The Health Savings Account, or HSA. Let’s start by discussing what an HSA is not: a Flexible Spending…

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Tax Preparation Versus Tax Planning

When having your taxes prepared—whether by using a tax program or a tax preparer—the expectation is to end up with the lowest tax bill possible. Unfortunately, such an expectation may be inaccurate. Most tax programs and tax preparers take data and diligently place the numbers in the right box to get the optimal tax response.…

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Minimize Stress During Tax Time—File an Extension!

The Internal Revenue Service (IRS) allows taxpayers to file for a 6-month extension if they need more time to prepare their tax returns. You can obtain a tax extension for any reason—the IRS grants them automatically and without penalty as long as you complete the proper form on time. Both Maryland and Pennsylvania accept the…

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The IRS Will Not Call You…

I began contemplating this article after two of my tax clients (both widows) called me to ask if they should reply to messages on their answering machines that they owed the IRS taxes. Two more clients, both married couples, received similar messages since then. In addition, last year two clients called me after receiving phone…

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To Extend or not to Extend

By Bob Boehner It seems every year most people want to have their taxes filed by April 15th and nobody wants to file an automatic, no questions asked, extension till October 15th. I wonder, do you feel you are doing something wrong if you do not file by April 15th? Many believe if you extend…

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I Love to Save You Taxes

As a Comprehensive Financial Advisor, among my services are risk management, investments, estate planning, retirement planning, cash flow management, debt analysis and tax planning. The one that energizes me the most is reducing your tax obligations through perfectly legitimate tax strategies. This joy comes from one simple fact and that is, “The Tax Laws are…

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Roth IRA’s

Stated simply, if you have cash in banks or assets in taxable brokerage or mutual fund accounts, but you do not have a Roth IRA, you are missing a tremendous opportunity. This article can end on the power of that one statement, but the advantages of the Roth IRA warrant further explanation. First, if we…

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