With the work-from-home policy becoming popular, more and more people move from one state to other states. Some move and settle with a new state; however, others just move temporarily to other states and move back after COVID-19. Moving permanently to a new state has a different state tax impact from temporary move to other […]
State Tax Impact When Moving to a New State Read More »
During COVID-19 period, many employers implement work-from-home policy which becomes more and more popular. Which state tax does a remote employee have to pay if he/she lives in one state and works from other states? Unless the taxpayer lives in tax-free states, a taxpayer needs to report all income to the resident state tax return
Where Do You Pay Tax if You Reside in One State and Work from Other States? Read More »
One way to reduce taxes and build for your future is to put money into retirement accounts. Most people may be familiar with regular retirement accounts like IRA, Roth IRA, and 401(k) . Regular retirement accounts are usually open with financial institutions or banks. Once the account is open, there is a list of mutual
Hidden Strategies to Maximize Your Retirement That You May Not Know Read More »
This post provides strategies for avoiding underpayment penalties for estimated tax including increasing withholding and IRA distributing. The post also explains the method that yields the smallest required payment for each quarter.
Strategies for Avoiding Underpayment Penalties for Estimated Tax Read More »
This blog post will focus on the tax-efficient strategies on the federal income tax for investments including stocks, bonds, and rental investments. Understanding tax implication will have a big impact on the return on investments (ROI) Types of Investment Income Before going to the details of tax-efficient strategies, taxpayers should understand the types of
Tax-Efficient Strategies for Investments to Consider Read More »
There is a misconception about the tax strategy for 2nd or rental homes. Tax payer can move to rental home, live in it for two years before selling it in order to get full exclusion for the gain of $250,000 for single filer or $500,000 for married jointly couple. Reducing the capital gain tax on
How to Reduce Capital Gain Tax on The Sale of The Second and Rental Homes. Read More »
There are many reasons for people to sell primary homes during their lifetime. People move to different locations due to work-related move. People may also have to sell their home, upgrade to a bigger home when the family has more members or downgrade the home when kids go to college, out of the home. Deciding
How to Minimize Tax on the Sale of Your Primary Residence. Read More »
A backdoor Roth IRA is a legal way for the high-income earners to contribute to Roth IRA. In general, IRA (Individual Retirement Account) is a tax-advantage vehicle toward retirement savings. There are different types of IRAs; however, this blog post will focus on Traditional IRA and Roth IRA as they are related to the Backdoor
Steps by Steps to Backdoor Roth IRA Read More »
Many of you may hear about IRC §121 exclusion which the taxpayer can exclude the gain up to $250,000 or $500,000 for married filing jointly. I also discuss about this provision in the another post. You can read the post How to Minimize Tax on the Sale of Your Primary Residence. One of the most
Real Estate Tax Trap to Avoid Read More »
Before discussing about the factors for choice of business entity, we should have a good understanding of options that a business can choose from There are some differences between legal entities and tax purpose entities. Federal Tax – Sole Proprietorship, Partnerships, C Corporations and S Corporations Legal Entities – Sole Proprietorship – Partnerships (various types)
Factors for Choice of Business Entity Read More »
