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Reducing Your Capital Gains Tax

Aside from paying income tax and payroll tax, individuals who buy and sell personal and investment assets should also deal with the capital gains tax system. Capital gain rates can be about as much as regular income taxes. The good news is there are strategies to bring them lower.

Here are handy tips to help you reduce your capital gains tax:

Wait one year before selling.

For capital gains to be qualified for long-term status (and less tax), wait a year before you sell the property. You could save, depending on your tax rate, between 10% and 20%. For instance, if you sell stock where the capital gain is $2,000, belong to the 28% income tax bracket, and have held the stock for over a year, you’ll have to pay 15% of $2,000 on the transaction. If you’ve held the stock for hardly 12 month, you’ll pay $560 or 28% of $2,000 in taxes on the transaction.

Sell when you’re earning low income.

Your income level affects the amount of long-term capital gains tax you are obliged to pay. Taxpayers within the 10% and 15% brackets don’t even have to pay long-term capital gains tax at all. If your income level is about to drop – let’s say your spouse is almost retiring or you’re about to lose your job – selling during this low income year will decrease your capital gains tax rate.

Lower your taxable income.

Since your capital gain tax rate relies on your taxable income, general tax-savings techniques can help you get a good rate. For example, increase your deductions by donating to charity, contributing more to your traditional IRA or 401k, or completing expensive medical procedures before the end of the year.

Look as well for not-so-known deductions, like the moving expense deduction, which is for those who need to move for employment. Rather than buying corporate bonds, get bonds issued by municipalities, local governments and states, as the income they produce is non-taxable. There’s an entire range of possible tax breaks, so study the IRS’s Credits & Deductions database so you know what you can qualify for.

When possible, time your capital losses with your capital gains.

One prominent feature of capital gains is that they’re lessened by any capital losses you incur on a certain year. To lower your tax, use up your capital losses in the years you have capital gains. There’s no restriction on how much in capital gains you should report, but you can only take $3,000 of net capital losses for every tax year. However, you may carry additional capital losses into future tax years, although it may take some time to use those up if you’ve had a particularly big loss.

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How To Select A Good Cell Phone Plan For A Business

A mobile phone is crucial to business and it has been ranked as one of the top business tools for any business because they play a major role in the communications infrastructure of any business despite the industry that is in and it is known that a missed text, a missed call or the inability to access a site can cost a company millions. A huge number of cellular providers will try to impress the market with funny and eye-catching advertisements and there are a lot of new handsets that have new features that the users cannot live without and the decision to equip the workforce and which of the services providers can partner with the business to make a huge difference on the bottom line.

The first decision in getting a cell phone plan for the firm is by determining if the company is right to go for business and the business owner needs to look at the business and decide how the cell phones are going to be used to address the communication needs of the firm and what the primary business drivers for the communication needs are. Cell phones are crucial when mobility is a major issue but there are some benefits for companies such as law firms that have people that spend a lot of time in the office on the phone with customers and for such people a cellphone would not be of much help.

The business owner needs to research the company calling habits by obtaining some copies of past phone bills to get an exact picture of the company’s calling patterns and assess some things such as if the business calls are local or are there some calls that have been made across the country and if they would need to have free or cheap international calls that have need to be added to the plan. The business owner also needs to determine if data and texting would be vital to the organization and once the previous questions have been answered they can start to see what type of cell phone plan will be right for the company.

The business owner needs to outfit the key people because it is unlikely that members of the company will need a cell phone company for their day-to-day work and limiting the number of phones that the firm can assign to key personnel can save the business money on the plan that they eventually select. If the business owner has mapped out the group’s communication needs then that should direct who is going to be issued a phone and normally senior management must have phones so that they can reach each other in emergencies or crisis.

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