|Posted on March 30, 2023 at 11:35 AM||comments (0)|
Alternative Minimum Tax otherwise known as AMT.
What: The AMT ensures that certain taxpayers pay their fair share or at least a minimum amount of tax.
When: For 2022, the exemption is $75,900 for single filers and $118,100 for couples filing jointly. For 2023, the exemption is $81,300 for single filers and $126,500 for couples filing jointly. A trigger for the AMT is when income is more than the AMT exemption amount.
How: For non-corporate filers, 26% tax rate applies to the first $206,100. Some deductions and credits that affect AMT are investment interest expense, net operating loss, capital loss, passive actibity loss and foreign tax credit.
|Posted on March 27, 2023 at 11:30 AM|
Net Operating Loss also known as NOL.
For income tax purposes, a net operating loss (NOL) is the result when a company's allowable deductions exceed its taxable income within a tax period.
A net operating loss in one year may be limited, but the IRS allows businesses to move these losses to offset gains (profits) in later years, through a process called loss carryforward.
Check out this helpful site, The Balance, for more details. https://www.thebalancemoney.com/net-operating-loss-nol-398354" target="_blank">www.thebalancemoney.com/net-operating-loss-nol-398354
|Posted on March 24, 2023 at 11:20 PM||comments (0)|
Hello everyone, it's that lovely time of year again. Tax Time! The more you understand the terms, the better decision you can make. It's still early in the year, first quarter is not over, reach out to a financial planner.
1)Tax -deferred = grow tax free until you withdraw the money.
2)Tax-Free = no taxes imposed on earnings or withdrawals.
3)Tax-Exempt = pay taxes now and pay no taxes at distributions.
Stay tuned, more to come.