If you exercised ISOs when the price was higher than it is now (or it’s a situation you could find yourself in), be wary of an obscure situation that could lead to a big tax surprise: the wash sale.
On March 11, 2021, President Biden signed the historically large $1.9 trillion American Rescue Plan Act of 2021. Here are some things to consider before filing your 2020 taxes.
Historically, the charitable donation tax deduction was only available as a below-the-line itemized deduction, and standard deduction takers weren't able to deduct their charitable donations. But if you made charitable contributions in 2020 and plan on taking the standard deduction on your 2020 tax return, read on – you may be eligible for a small above-the-line deduction.
The AMT paid on an ISO exercise is designed to be a prepayment of taxes that gets recovered in the future, but there are things to consider when triggering AMT with an ISO exercise to ensure you’re able to recover the extra taxes paid and don’t face any surprises down the road.
It’s not fun to think about our inevitable deaths. But one thing is certain: it will happen one day. And even though it’s probably not something you want to discuss or think about until you have to, you should. Estate planning often comes up when there's a spouse or children in the picture, or when health and longevity comes into question. In these cases, having a will is an obvious must. However, even if you’re healthy, single, and have no children, a clear, here are three reasons why having a will is important for anyone who has property.
Worrying and analyzing is completely natural when dealing with our money. After all, we don’t want a misstep to threaten our financial stability and future, and we don’t want to leave money on the table. The danger comes when this worry and pursuit of perfection turns into the inability to act. It feels safe to avoid taking action, but not doing anything is a decision, and it can be a dangerous one for your finances.
