Last minute stock portfolio strategies.

Strategies

Last minute stock portfolio strategies.

Nov 5, 2021 by Ed Babitzke 0 Comments

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 2021 income taxes.

The tax code contains the basic rules for this game, 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.

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Business Tax, Tax Breaks

Tax Breaks for Self-Employed Clients

Oct 13, 2021 by Ed Babitzke 0 Comments , , , , ,

Recently there has been an increase in self-employed workers, freelancers, and side gigs. You can look at different forums (Reddit, Facebook, Instagram, Esty, Ebay, and others) and see an increase of activity.

Before starting this short discussion there are a few references that you should review: Form 1040, Schedules 1, 2, 3, C, and SE. Along with Publication 334, Publication 535, Publication 463, and Publication 583 at IRS.GOV.

man holding drinking glass
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Services

New Service

Oct 2, 2021 by Ed Babitzke 0 Comments

I am offering a new service. Here is a video.

IRS Account Monitoring

The new service that will monitor your IRS account. You will get notified if something on your transcripts change. This is an annual subscription:

  • Detect IRS Audit and Exam Months Prior to Notices in Most Cases
  • Audit risk assessment
  • Detect Liens and Levies
  • Identify First Time Abatement
  • Annual Income Verification
  • Track IRS Payments for Agreements and Estimated Payments
  • Verify Your Business Employment Tax Deposits
  • Comprehensive Tax Analysis Report Once a Year

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Real Estate

Selling your house? Prorated gain exclusion

Sep 27, 2021 by Ed Babitzke 0 Comments

Here’s good news. IRS regulations allow you to claim a prorated (reduced) gain exclusion—a percentage of the $250,000 or $500,000 exclusion in select circumstances.

The prorated gain exclusion equals the full $250,000 or $500,000 figure (whichever would otherwise apply) multiplied by a fraction.

The numerator is the shorter of:

  • the aggregate period of time you owned and used the property as your principal residence during the five-year period ending on the sale date, or

  • the period between the last sale for which you claimed an exclusion and the sale date for the home currently being sold.

    • Selling your primary residence? IRS Publication 523
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