Category Archives: Investment Income

Alternative Minimum Tax (AMT) for Individuals

Posted on August 17, 2012 by Paul Picone

The Alternative Minimum Tax (AMT) was enacted by congress in 1969 to correct abuses of the regular tax system by numerous high-income taxpayers who did not pay any tax. The AMT is a separate system of taxation that parallels the regular tax system.  Prior tothe … Continue reading →

Posted in Individual Taxation, Investment Income, Tax Credits, Tax Planning Strategies, Tax Preparation, Tax Returns | Tagged , | Comments Off

Don’t Fear “Locking Up” your Funds in a Roth IRA

Posted on March 5, 2012 by Paul Picone

We all know the many benefits of investing in a Roth IRA including tax-free earnings, no required minimum distribution at 70 1/2 or at any time prior to death, potentially tax-free inheritance and long-term tax-free distributions for beneficiaries. Despite the … Continue reading →

Posted in Investment Income, Retirement Accounts, Tax Planning Strategies | Comments Off

Save Tax using Transfers to Children

Posted on March 4, 2012 by Paul Picone

Children are typically in a lower tax bracket than their parents, and shifting income to a lower tax bracket can be an effective tax planning strategy to save for a child’s education. Methods to accomplish this include parents gifting income-producing … Continue reading →

Posted in Investment Income, Tax Planning Strategies | Tagged , | Comments Off

Health Reform’s Medicare Tax on Investments

Posted on March 2, 2012 by Paul Picone

To help pay for expanded health insurance coverage, the health reform legislation enacted in 2010 included a new 3.8 percent tax on the net investment income (unearned income) of high-income taxpayers. When it goes into effect in 2013, it will … Continue reading →

Posted in Investment Income, Tax Law Changes | Tagged , , , | Comments Off