Congress finally put off the inevitable last week and passed the tax cut extension we’ve all been waiting for since the beginning of the year. If you’re not sure how you benefit from the extension, we’ll break it down for you.
Tax Rates
With the signing of the tax cut extension, all income tax rates will remain the same for two more years. So we won’t see the possibility of rates going higher until after 2012. It’s not really a benefit over this year but if the tax cut extension hadn’t passed we would all be paying more taxes next year and beyond.
The tax rate on long-term capital gains and qualified dividends will also remain the same for the next two years. The tax rate for both will max out at 15% through 2012. If you’re in one of the two lowest tax brackets (10% or 15%) you will have a 0% capital gains rate. You have until the end of the year to rebalance your portfolio to take advantage of these tax rates for the year. Continue Reading…
The holidays are upon us once again and Wall Street is waiting to see if Santa will spread a little holiday cheer on the stock market at the end this year. Like the Christmas shopping season the term “Santa Claus Rally”, seems to be used earlier every year. Any slight change in the stock market from November to December and a race ensues to see who can use the “Santa Claus Rally” term first.
The 2010 Roth IRA conversion deadline is approaching quickly. If you haven’t heard, the previous income limit ($100,000) for converting a traditional IRA to a Roth IRA was lifted all the way back in January. With 2011 approaching, it’s always a good idea to check your finances and make any beneficial changes before the new tax year begins.
In a world of online banking, ATMs, direct deposit, debit cards, we don’t have to go the brick and mortar bank as often as we used to. Before the internet age there used to be a time where people had to go to the bank rather often and in doing so would see the alphabet soup splashed on every door and drive through teller window.
“MidTerm Election Effect”