Dana McGuffin CPA Blog

Is a Tax Time Bomb Lurking in Your Paycheck?

By Dana McGuffin | September 22, 2020 | Comments Off on Is a Tax Time Bomb Lurking in Your Paycheck?

      Does your paycheck look a little higher than normal? If so, it could be a tax time bomb.   The Problem A payroll tax deferral beginning September 1 was recently signed via a presidential executive order. The potential deferral of your portion of Social Security as an employee could raise your take…

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A Gift of Stock: Information is key when using this tax planning strategy

By Dana McGuffin | September 1, 2020 | Comments Off on A Gift of Stock: Information is key when using this tax planning strategy

  You own some stock that has increased in value. To avoid a possible taxable gain by selling the stock, you wish to give it directly to a child or grandchild. This simple idea has some interesting tax consequences to consider.   Value of the Gift When you gift stock there are not one, but…

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Tax-Free Roth IRA Withdrawal Options: What every Roth IRA account holder should know

By Dana McGuffin | August 13, 2020 | Comments Off on Tax-Free Roth IRA Withdrawal Options: What every Roth IRA account holder should know

  Withdrawing funds from your retirement accounts must be done carefully to avoid a potential 10% early withdrawal penalty. Unfortunately, each retirement account type has different rules. Here are some tips for Roth IRAs. Roth IRA basics Roth IRA accounts differ from other IRAs in that your contributions are made in after-tax dollars. If you…

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Understanding Tax Terms: Wash Sales Surprise! Your stock loss is not deductible.

By Dana McGuffin | July 30, 2020 | Comments Off on Understanding Tax Terms: Wash Sales Surprise! Your stock loss is not deductible.

  You may be considering booking stock losses due to recent market drops in order to save on your bill from Uncle Sam. Selling losers can be a great strategy when these losses can offset stock gains and up to $3,000 in excess stock losses can offset your ordinary income. However, there is a little…

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Tax Surprises for the Newly Retired

By Dana McGuffin | July 21, 2020 | Comments Off on Tax Surprises for the Newly Retired

    You’ve got it all planned out. Your retirement savings accounts are full, you have started receiving Social Security benefits and your pension is ready to go. Everything is planned. What could go wrong? Here are five surprises that can turn your plan on a dime. 1. Health emergencies and long-term care. When a simple…

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Deducting Summer Activity Expenses: Don’t forget to save receipts

By Dana McGuffin | June 30, 2020 | Comments Off on Deducting Summer Activity Expenses: Don’t forget to save receipts

  The kids are out of school and summer is well underway. Make sure you understand the rules regarding the tax deductibility of summer activities and related daycare expenses through the use of the Child and Dependent Care Credit. Collecting those receipts now can save plenty during tax time. What is deductible? 20 to 35%…

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Estate Taxes: What EVERYONE Should Know

By Dana McGuffin | June 16, 2020 | Comments Off on Estate Taxes: What EVERYONE Should Know

    Most taxpayers ignore the federal estate tax, thinking they will never be touched by it. Unfortunately, you do this at your own peril. Why? Because states often have this tax AND politicians have a habit of frequently changing the rules. The best approach for all taxpayers is to understand the basics of the…

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The New Face of Banking: It suddenly just got a whole lot more difficult to buy a home

By Dana McGuffin | May 28, 2020 | Comments Off on The New Face of Banking: It suddenly just got a whole lot more difficult to buy a home

The banking sector is the latest industry to dramatically change how it operates in response to the current economic environment. The most visible change for consumers are new requirements for taking out a mortgage. Here are some tips for working with banks and other lending institutions in the midst of tighter lending requirements and a…

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Review IRA Beneficiaries Now: Lost in the pandemic is a tax law change that may require your attention

By Dana McGuffin | May 12, 2020 | Comments Off on Review IRA Beneficiaries Now: Lost in the pandemic is a tax law change that may require your attention

  Lost in the media storm during the coronavirus pandemic is a law change enacted in late 2019 that eliminates an IRA withdrawal technique known as the stretch IRA. Here is what you need to know. Time to review beneficiaries While the chances of you having a severe reaction to the coronavirus are low, it…

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Tax Savvy Moves to Consider During the Pandemic

By Dana McGuffin | April 28, 2020 | Comments Off on Tax Savvy Moves to Consider During the Pandemic

    Who would ever have foreseen a time when petroleum companies would pay you to take their oil? This phenomena underscores the concept that within every problem there is opportunity. Here are some tax strategies to think about during the coronavirus pandemic. Look into Roth rollovers If you have high balances in tax-deferred retirement…

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