New rules govern how you can shift income to family members and lower your tax liability and adjusted gross income. Understanding the new rate reduction in place for long-term capital gains is important for taxpayers whose stocks or real estate have benefited from the recent growth in the economy. The Taxpayer Relief Act of 1997 excludes items like collectibles from favorable capital gains treatment. Adoptive parents may be unaware of a 1996 tax change that can lessen their tax burden. Computing your cost basis is the first step in calculating gain or loss from the sale of your personal residence.
Some new homeowners can fully deduct the points paid on home mortgage loans in the year paid.
If your home office qualifies, you can save on your tax bill. A look at tax issues for small businesses and the Section 179 deductions. If you've moved to a new home because of a new job or changed job location, you may be able to deduct the expenses. Contributing to a traditional IRA is easy, compared to the decisions involved when it comes time to distribute the money. Unfortunately, many distribution recipients have unintentionally committed slip-ups that will impose substantial income tax liability on future inheritors.