Personal Tax

We discuss the personal tax consequences related to Capital Loss deductions, Wash Rule, Foreign Tax Credit, Stock Options, Provisional Income, AMT, Rule 72(t), inheritance and gifts. Capital Loss and Wash Rule: Capital Loss will first offset any Capital Gains, and if there is still a net Capital Loss, then it can offset up to $3K […]

We summarize here the significant changes brought about by the TCJA law of 2017. Unless renewed by Congress, these changes will sunset in 2025. Tax bracket rates lowered: There are still 7 tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%, but their respective rates have been lowered.  The application of these tax brackets to

Personal Income tax components include Federal, State and FICA. We provide a summary of Federal tax brackets and example calculations for an individual with $100K and $200K AGI. Income tax has three components: Federal, State and FICA. Taxable income for Federal taxes is either Ordinary Income or Long-Term Capital Gains (LTCG). The Ordinary Income portion

An overview of the Federal income tax calculation starting from your paycheck, which shows how income is defined for tax purposes and where the deductions are taken. We present an overview of the Federal income tax calculation in Form 1040 starting from the W2. The W2 has two types of deductions: FICA and pre-tax. Items