Can I convert my traditional IRA to a Roth IRA without penalty?
Converting a traditional IRA to a Roth IRA can be straightforward if you keep an eye on taxes. You can contribute to a traditional IRA at any age if you have earned income. But what if you’re 70½ or older? Can you still roll over money from a traditional IRA to a Roth IRA in […]
How to Calculate Taxes on Your Social Security Benefits?
You might be surprised to learn that Social Security benefits aren’t completely tax-free. Based on your income, up to 85% of your Social Security benefits could be taxed. This applies to retirement, survivor, and disability benefits from the Social Security trust funds, but not Supplemental Security Income (SSI). You’re more likely to pay taxes on […]
Tax Planning 2024: How to Utilize Grantor Retained Annuity Trust (GRATs) for Tax Savings
At our company BSE Accounting, we have often witnessed clients seeking effective strategies to preserve and transfer their wealth efficiently. One powerful tool that I frequently recommend, especially in the current tax environment, is the Grantor Retained Annuity Trust (GRAT). Here, today we will share our insights and experiences on how to utilize GRATs for […]
Tax Planning 2024: Understanding Intra Family Loans and Mortgages
As we approach the 2024 tax season, it’s crucial to delve into strategic tools like intra family loans and mortgages. These financial instruments not only facilitate wealth transfer within families but also provide potential tax benefits when structured correctly. As an expert in tax planning, I’ll guide you through the nuances, benefits, and potential pitfalls […]
Latest Tax Law Changes and How They Affect Your Tax Planning 2024
As we step into 2024, it’s crucial to stay abreast of the latest tax law changes that could significantly impact your financial planning. Navigating these adjustments can be daunting, but understanding the key changes can help optimize your tax strategy. Here’s a comprehensive overview from a tax expert’s perspective, presented as a personal narrative to […]
URGENT: Federal Reserve Cancels Recession, Prices Fall, Massive Pivot Ahead
Attention everyone! Just a few hours ago, a significant development occurred. The Federal Reserve has chosen to pause rate cuts indefinitely. Surprisingly, investors are now considering the possibility of an unexpected rate hike within the next year, assigning it a 20% probability due to rising inflation, falling stock prices, and global tensions. Today’s Federal Reserve […]
How Much Home You Can ACTUALLY Afford in 2024 (By Salary)
Introduction Today, I want to delve into a crucial question: How much home can you afford? It’s essential to live within your means, especially when considering a significant investment like a house. Let’s break down the numbers. Assumptions Before we dive in, let’s establish some assumptions: ● Loan Term: 30 years ● Property Tax: 1.25% […]
The #1 Thing Keeping You From Wealth Building
Understanding the Real Problem with Debt Debt is often mistaken as the main financial issue individuals face; however, it’s actually just a symptom of deeper underlying problems. It’s crucial to understand that personal finances are 80% behavior and 20% head knowledge. For example, if you haven’t made any progress on your student loan debt for […]
Lie for Tax Reasons?
When selling a recreational vehicle to a private party, the buyer may sometimes request the seller to declare a lower transaction value on paper. This typically stems from a desire to reduce the tax impact of the purchase. Such a request can put the seller in a difficult moral and legal position. Ethical Considerations It’s […]
Tax Brackets Explained For Beginners in The USA
Understanding how tax brackets work in the USA can be a bit complex, so let’s break it down using an example of someone earning $100,000 a year. This total income can be organized into different segments or “piles” to represent tax brackets. How Tax Brackets Work Here’s a simplified breakdown of the income: ● The […]
