All articles tagged with #tax strategy
Originally Published 3 months ago — by Barron's
Berkshire Hathaway is considering acquiring Occidental Petroleum’s chemicals business for around $10 billion, potentially using a tax-efficient deal involving preferred stock and cash, which would benefit Occidental by avoiding taxes and reducing dividend payments, while offering Berkshire a strategic purchase option.
Originally Published 4 months ago — by CNBC
President Trump’s legislation increased the SALT deduction limit to $40,000 for 2025, allowing itemizers to maximize their tax benefits by prepaying property taxes and estimated state income taxes, especially for high earners, while being mindful of phaseouts and the 'SALT torpedo' effect for incomes between $500,000 and $600,000.
Originally Published 5 months ago — by CNBC
The article discusses how Trump's new legislation caps the SALT deduction at $40,000, but introduces a 'SALT torpedo' that could result in a 45.5% tax rate for high earners with modified adjusted gross income between $500,000 and $600,000. It offers strategies such as managing income, using ETFs, adjusting retirement contributions, and avoiding large gains to mitigate this impact.
Originally Published 1 year ago — by CNBC
Financial advisors suggest that donating appreciated stock to charity can be a more tax-effective strategy than cash donations, as it avoids capital gains taxes and allows for a deduction of the stock's market value. With the higher standard deduction, fewer taxpayers itemize, but strategies like "stacking deductions" or using donor-advised funds can help maximize tax benefits from charitable giving.
Originally Published 1 year ago — by CNBC
Mega backdoor Roth conversions allow high earners to bypass Roth IRA income limits by shifting after-tax 401(k) contributions to a Roth account, offering significant tax-free growth potential. This strategy is particularly beneficial after maximizing other tax-advantaged options, though not all 401(k) plans permit it. Experts advise reviewing plan details and converting funds regularly to minimize taxes on growth.
Originally Published 1 year ago — by The Associated Press
Retirees should carefully consider their tax strategy, as decisions regarding 401(k) withdrawals, Social Security benefits, and timing can have significant tax implications. Consulting a tax professional before making these decisions is advised to avoid surprises and potentially save on tax dollars. Withdrawing large amounts from retirement accounts or taking Social Security benefits early could result in increased taxes or penalties, while making catch-up contributions to IRAs may help increase retirement benefits and decrease taxable income for 2023.
Originally Published 1 year ago — by Investopedia
Jeff Bezos, the founder of Amazon, has sold $6 billion worth of the company's stock as part of a predetermined plan for selling company stock, following the SEC's 10b5-1 rule. His recent move back to Miami, where he attended high school, helps him avoid a 7% capital gains tax in Washington, where he previously lived. The move to Florida, which has no state-level income tax, is estimated to have saved Bezos around $430 million in state taxes.