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52 fiscalcliff fiscalcliff surplus 53 fiscalcliff

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Unformatted text preview: paying all the taxes you owe, such as not reporting all income Tax Avoidance/Tax Planning Legitimate methods to reduce your tax obligation to your fair share but no more 48 Tax Deferred vs. Tax Exempt Tax Deferred vs. Tax Exempt Tax deferred investments defer current taxes due, however taxes will be due later Traditional IRAs and 401­Ks U.S. Savings Bonds Deferred annuities Unrealized gains on stocks & bonds Tax free investments (exclusions) are quite limited Interest on municipal bonds Interest on Roth IRAs Interest from Sec. 529 college savings plan 49 Tax­Planning Strategies Tax­Planning Strategies Item Income Deductions Higher Tax Lower Tax Bracket Next Bracket Next Year Year Accelerate to Wait for next this year year Wait for next year Accelerate to this year 50 Tax­Planning Strategies Tax­Planning Strategies Buy a house Buy municipal bonds (higher tax rate individuals) Get a Roth IRA Use tax­deferred retirement plans 401(k) plans Traditional IRA Education IRA to help save for college costs Establish a Keogh plan if self­employed Build capital loss carryforwards during bad years Generate long­term capital gains before rates increase 51 Fiscal Cliff Fiscal Cliff Not on mid term, but explains what may happen to your social security and Medicare benefits when you retire! 52 Fiscal Cliff Fiscal Cliff Surplus 53 Fiscal Cliff Fiscal Cliff 54 Fiscal Cliff Fiscal Cliff 55 Fiscal Cliff Fiscal Cliff Source: Bureau of Economic Stat...
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