Posts Tagged "stock"

Don’t overload on company stock

Posted on Jun 25, 2014

Don’t invest too much of your 401(k) plan contributions in your company’s stock. Remember, even if the company is doing well now, things can change. And if the worst happens and you lose your job, you don’t want to lose your retirement savings too. If your employer used company stock for the matching contribution, you may have no choice. But at least you can select other investments for your own contributions. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+ <https://plus.google.com/108764776146415485651/posts> , LinkedIn <http://www.linkedin.com/in/gillilandcpa> , Facebook <https://www.facebook.com/gillilandcpa> , and Twitter...

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Tax strategies for charitable giving

Posted on Jan 2, 2014

Now that the holiday season has arrived, you might decide to step up your charitable donations to boost your deductions for 2013. Here are six timely strategies. 1. Audit-proof your claims. The IRS imposes strict substantiation rules for charitable donations. In fact, you’re required to keep records for all monetary contributions, no matter how small. The best approach is to obtain written documentation for every donation. 2. Charge it. The deductible amount for 2013 includes charitable gifts charged by credit card before the end of the year. This covers online contributions using a credit card account. So you can claim a current deduction for donations made as late as December 31. 3. Give away appreciated stock. Generally, you can deduct the fair market value (FMV) of capital gain property owned longer than one year. For instance, if you acquired stock ten years ago for $1,000 and it’s now worth $5,000, you can deduct the full $5,000. The appreciation in value isn’t taxed. 4. Sell depreciated stock. Conversely, it usually doesn’t make sense to donate stock that has declined in value, because you won’t receive any tax benefit for the loss. Instead, you might sell the stock and donate the proceeds. This entitles you to a capital loss on your 2013 return plus the charitable deduction. 5. Clean out the storage space. The tax law permits you to deduct charitable gifts of used clothing and household goods that are still in “good used condition or better.” Don’t be so quick to discard items that can be donated to charity. 6. Donate a car. The deduction for a donated vehicle valued above $500 is generally limited to its resale amount. However, if the charity uses the vehicle for its tax-exempt purposes, you may be able to deduct its fair market value. Call us for more details on the tax rules governing charitable contributions. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+ <https://plus.google.com/108764776146415485651/posts> , LinkedIn <http://www.linkedin.com/in/gillilandcpa> , Facebook <https://www.facebook.com/gillilandcpa> , and Twitter...

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Can you have too much of a good thing?

Posted on Oct 31, 2013

Employees often have too much of their employer’s company stock in their 401(k) or other retirement plan. Employees feel they know their company best, overlooking the risks of having too much of an investment in any one company, including their own. What are some of the risks of loading up on your employer’s stock? * Tremendous bet in a “safe haven.” Overweighting investment holdings in any company minimizes diversification, exposing your portfolio to increased risk. The belief that employer shares are less risky is an illusion. * Double whammy potential. No company is protected from economic downturns. If your employer’s performance weakens, you may lose your job, as well as growth in your retirement portfolio from the company’s market value. * Lock-up periods. Some companies prohibit employees from converting the employer retirement match contributions in company stock into other investments until after a number of years. In this case, use your own contributions to diversify your holdings. * Tendency to forget. As you move closer to retirement, you may forget the riskiness of your employer’s stock to your portfolio. At the same time, contributions of company stock may be growing, based on higher benefit matches – just when portfolio reallocation is becoming more important. Your goal should be to create a well-balanced portfolio that suits your age (investment horizon) and your risk tolerance. Call us for assistance in reviewing your retirement situation. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+ , LinkedIn , Facebook , and...

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Identify shares you’re selling

Posted on Nov 16, 2012

You can often manage the size of your gain or loss when you decide to sell some, but not all, of a particular stock or mutual fund. To do this, you must have kept good records of the date and the price for each share purchase. By selling the highest cost shares first, you’ll minimize your taxable gain or maximize your loss. You must specify the particular shares you are selling at the time you...

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Tweet shorts

Posted on Jun 5, 2012

All of the following are under 140 characters for tweets: * Gift $13,000 in 2012 to as many people as you like. No gift return and no gift tax. Unlimited tax-free gifts to your spouse. * If you sell stock at a loss, be careful about repurchasing the same stock. Wash sale rules could eliminate your loss. * If you plan to sell business or investment property, consider a tax-deferred exchange and pay no tax. Lots of rules; call us. * Is this your first year as a self-employed? You are most likely required to make quarterly tax estimates to avoid penalties. * June 15 is the due date for individuals and corporations to make the second estimated tax payment for...

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