Posted in Retirement Planning
Despite recent proposals to scale back benefits, Section 529 plans remain a tax-favored way for parents to set aside funds for college. Here are the answers to several key questions on the subject:
Whether it is a beach house, a cabin in the woods or some other place, a vacation home can be a valuable source of tax breaks, as well as rest and relaxation. For example, you can deduct property taxes along with your mortgage interest (assuming the combined acquisition debt of your main home and vacation home does not exceed $1 million).
Hypothetical situation: You decide to rent out your vacation home this upcoming summer when your family is not using it. The rental income you will receive can offset some of the costs of ownership. Of course, this income is taxable, but you may claim offsetting deductions for a portion of your expenses.
Posted in Tax Updates
If you are established in a job or operate your own business, when should you start saving for retirement? Although there are numerous aspects to consider and complications in certain situations, the short answer is relatively simple: immediately!
If you have recently entered the workforce, the sooner you begin a program of retirement saving, the better. If you are already in the midst of your career, you should not delay any longer. And if you are nearing the traditional time for calling it quits, better late than never.
Posted in Retirement Planning
