Making Cents: Thinking of another state to save taxes

By: John P. Napolitano, CFP®, CPA, PFS, MST

We haven’t seen the first frost here in New England yet, but already I hear rumblings of people packing up and making plans to ship their cars south for the winter. Avoiding snow is the main objective of most snowbirds. Eventually, however, many snowbirds learn about the tax advantages of states like FL or TX, and want to declare that state as their legal domicile.

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Making Cents: The Tax Consequences of Significant Gifts

By: John P. Napolitano, CFP®, CPA, PFS, MST

As summer settles in and families spend time together, many think about making gifts to charities or loved ones as a part of shedding assets in their estate or simply sharing the wealth. This could be for estate tax planning, the fear of loss through a long term illness or simply for philanthropic purposes.  Here we are going to discuss a few ways that high net worth taxpayers can utilize their wealth for the next generation now rather than after they pass..

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Making Cents: Taxation on the sale of your residence

By: John P. Napolitano, CFP®, CPA, PFS, MST

As we all know, just about anything that you sell for a gain comes with a tax bill.  There are a few exceptions, with your primary residence being one of them. The home sale exclusion allows a married couple to exclude up to $500,000 of gain on the sale of their primary residence.  The exclusion would be $250,000 for a single taxpayer.

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Making Cents: Don't let taxation drive your investments

By: John P. Napolitano, CFP®, CPA, PFS, MST

 

In theory, a good investment is one that you buy low and then sell later for a higher price.  Sometimes that is easier said than done, but the past 9 years have delivered good returns for most investors who took some risk.  The only problem is that the prospect of paying capital gains taxes is so unappealing that most investors delay selling until their investment starts to go down and they get nervous. Unfortunately, this thinking is somewhat flawed and not always worth the wait for a variety of reasons.

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