Who's on your team? No, not your sports or reality-show
dancing team, your business team, that group of professional advisors who are
ready and willing to help you tackle tough financial decisions.
Those decisions can have an effect on your taxes this year
as well as in the future, so you want to be sure your advisors know each other -
and are working together for your benefit.
As you begin your midyear planning review, here are three
areas where coordinating the advice you receive can pay off.
* Investments. Capital gains and losses from sales of your
securities affect your taxes, of course, but the kind of investments you make
can also have an impact. For instance, buying municipal bonds to generate
tax-free interest may result in the unintended outcome of creating income
subject to the alternative minimum tax.
* Insurance. The type of health insurance plan you select
can have tax implications. An example: A Health Savings Account (HSA), used in
conjunction with a high-deductible health plan, can save premium and tax
dollars. You fund an HSA with pre-tax cash and take tax-free withdrawals to pay
medical expenses.
No comments:
Post a Comment