All articles tagged with #tax savings
President Trump's new tax law allows for a tax deduction on interest paid for loans on new, U.S.-assembled vehicles purchased for personal use, potentially saving buyers hundreds of dollars annually, with eligibility based on income and vehicle origin.
Jeff Bezos has sold 50 million Amazon shares over the past two weeks, raking in approximately $8.5 billion. This marks the first time he has sold his stock in the e-commerce giant since May 2021. Bezos, who recently moved from Seattle to Miami, will benefit from tax breaks on his windfall due to the differing tax laws between the two states. He also plans to save on property taxes in Miami's exclusive Indian Creek island, where he purchased two neighboring properties for a total of $147 million.
Jeff Bezos is set to save over $600 million in taxes by making Miami his primary residence, allowing him to avoid state income and capital gains taxes. His move from Seattle to Miami comes with significant tax advantages, with the potential to save him $140 million in capital gains taxes on a recent stock sale and an estimated $610 million by 2025. The move to Florida also exempts him from estate taxes, potentially saving him billions in the long run. Bezos has made high-profile real estate purchases in Miami, including a $79 million mansion and a $68 million property, and is expected to build a megamansion on the exclusive island Indian Creek.
Nearly half of Americans with Flexible Spending Accounts (FSAs) leave money unused at the end of the year, resulting in an average forfeiture of about $370. However, there are various ways to spend FSA funds before the December 31 deadline, including purchasing Covid tests, contact lenses, pain relievers, paying off medical bills, dental visits, fitness classes, air purifiers, ancestry kits, health tracking devices like the Oura Ring, and massage guns. FSA funds are pretax dollars, providing tax savings, and can be used to stretch healthcare spending.
As the year-end approaches, there are several tax-saving strategies to consider. The Inflation Reduction Act offers tax credits for energy-efficient home improvements and electric vehicle purchases. Other strategies include maximizing contributions to 401(k) accounts, making charitable donations, and utilizing tax-loss harvesting. Seniors should be aware of the required minimum distribution (RMD) rules for retirement accounts. It's important to take advantage of these opportunities before December 31 to maximize tax savings.
Direct indexing, an investment strategy once reserved for the wealthy, is now becoming accessible to Main Street investors. By buying individual stocks to replicate an index like the S&P 500 or Russell 2000, investors can customize their portfolios and exclude companies that don't align with their views. Direct indexing also offers tax-saving benefits through tax-loss harvesting, where investors sell losing stocks to offset capital gains. With technology advancements and low trading costs, more people can now take advantage of direct indexing to potentially save thousands of dollars in taxes each year.