Given the dysfunction in Congress, we were both surprised and pleased to see that last week the House of Representative passed legislation that will help Americans retire. The bill, called Setting Every Community Up for Retirement Enhancement Act, or SECURE Act, was approved 417-3, a rare demonstration of bipartisan cooperation. The bill cobbles together several […]
Is there a tax-efficient way to give gifts?
We’re occasionally asked by friends, clients and colleagues whether it’s possible to give gifts in a tax-efficient manner. The answer generally depends on the value of the gift, the nature of the asset, and who the recipient is. Cash Gifts Gifts of money to anyone – including a family member – will not trigger a […]
Trump and Tariffs
If you’ve been following the news, you’ve undoubtedly learned that President Trump has been attempting to negotiate a new trade agreement with China. He has adopted tariffs as his primary tactic to force China to agree to terms he believes are favorable to the United States. However, China has responded in like fashion and both […]
Unexpected and Unpleasant Surprises When Getting Divorced
Divorce is stressful on everyone involved, and the financial downside is usually anticipated by both parties. If you’re planning to divorce, you’ve probably budgeted for less income, sole responsibility for some larger expenses like a car payment, and legal fees. But, in our experience, divorcing couples are sometimes caught off-guard by some important misunderstandings or […]
What Happened to My Tax Refund?
The 2017 Tax Cuts and Jobs Act (“TCJA”) changed tax withholdings for W-2 wage earners. Because the new law nearly doubled the standard deduction, employees had less withheld from their paychecks. The required withholding on bonus payments, vested restricted stock and stock options also changed, from 25% to 22%. The problem is that a significant […]
Is it Time to Bail on the Oregon 529 Plan?
In a recent blog post, we outlined how 529 education savings plans work, and why they can be such an attractive tool for saving for education expenses. If you own or contribute to an account with the Oregon College Savings Plan, you probably realize that the administration of the plan changed (again) last year from […]
What is the Oregon First-Time Homebuyer Savings Account?
Saving for first-time home purchase in Oregon just got a little more tax-friendly. What is the FTHSA? A First-Time Homebuyer Savings Account is a special account created by the Oregon legislature in 2018 for resident taxpayers intending to buy their first Oregon home. Subject to income limitations, single filers can claim up to a $5,000 […]
Avoiding the Double Tax Trap with an Employee Stock Purchase Plan
If you’re a participant in your employer’s Employee Stock Purchase Plan, you’ll receive an IRS Form 3922 to help you file your taxes. In this article, we’ll review what form 3922 is, why it’s important, and what you may need to do to help your accountant file your taxes correctly. What Is It Formally titled […]
Can I Really Make My IRA Dollars Tax-Free?
Can you really make your IRA dollars tax-free? If you’re an avid, or even occasional, reader of personal finance books, magazine articles or blog posts, you’ve probably come across this topic. If not, your first reaction may be, “Since there’s no such thing as a free lunch, what’s the catch”? Let’s first review what it […]
Minimize Your Taxes with Asset Location
Asset location is a tax optimization strategy that takes advantage of the fact that different types of investments receive different tax treatment. To benefit from this strategy, you must have investments in both a taxable account (e.g. a brokerage account) and a tax-deferred account (e.g. an IRA, 401(k) and/or 403(b)). You determine which investments should […]