0% Capital Gain Tax Rate
This tax break was supposed to expire at the end of 2010, but congress has extended it for at least one more
year. If you have not paid attention to this and taken advantage of it yet you really need to do it now before it
really does get taken away.
The basics of this law is that if you are married and filing jointly and you can keep your taxable income under
$65,100 than you will be able to take advantage of this temporary tax break. If you are single and can keep
your taxable income under $32,550 then you will be able to take advantage also. One of the main things to
remember here is that we are talking taxable income so when you add back in the standard deduction and
the personal exemption your total income can actually reach as high as $83,000 for those filing married jointly
and $41,500 for those filing as a single. What the law says is that so long as you stay in the 25% tax bracket
with the rest of your income then you will pay no taxes on your capital gains. There are many ways to lower
your taxable income in order to allow yourself to get the maximum benefit. It is not often that we get to turn
what is normally taxable income into tax fee income or when we get a chance to reset our basis in some of
our investments. That means you could sell an investment such as stocks, bonds or mutual funds, bring in
the gain tax free, and then turn right around and buy the exact same investment back and of course have a
higher tax basis, so that when you do sell it for good some day you will pay a whole lot less tax overall. To
fully understand and take advantage of this temporary tax break, at the very least you need to order your
copy of my free report and you would be best served if you got with your accountant. We offer a free 1 hour
consultation to all our clients so if your tax person can't help you accomplish this task, give us a call we'll be
glad to help you lower your taxes.
The big 30%, up to $1,500 for energy improvements to your home is over. The energy credits that will now
be available for windows, doors, insulation, new heating and air conditioning is going to look much more like
the one that was available 3 years ago. It is going to max out at $200 or $300 but there is one big catch. If
you took advantage of
Direct Rollovers from 401k Plans to Roth IRA's
This used to be a two step process, a person used to have to first roll over the proceeds to a traditional IRA
and then convert that to a Roth. Now it can be done all in one step.
Mileage Rate Changes
The mileage rates will probably change again for 2012. But a of right now the amount has not been set.
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|2011 TAX LAW CHANGES
The tax code consists of 71,684
About 47% of all U.S. taxpayers do
not pay any income taxes after
taking into account the credits
afforded to most.