New Tax Changes Affect Gifting Money to Minors

As the end of school approaches, many parents and grandparents consider college expenses for their children. What once was an easy and low-tax way to give money to younger children will soon cost a good deal more. Ashley Ebeling for Forbes explores the changes in the so called “Kiddie Tax” in her article, The Kiddie Tax Grows Up: Beware The IRA Trap

Saving Money Collectively

Just the other day, our garage door spring broke. Putting out a request for suggestions on a Facebook group brought a great amount of feedback and ultimately a free, brand-new garage spring. There are many of these sites available that can help you network with others who may have what you need or need what you’ve got. Read more and learn about the best ways to save money in your community. How to Save Money With the Help of Your Community

The New Pension Plan

With such a variety of retirement plans, many current workers will not have an actual pension. Ann Carrns, for the New York Times suggests a variety of ways to make your savings work for you in her article, No Pension? You Can ‘Pensionize’ Your Savings.

Her top recommendations include working longer, delaying Social Security payments, and, creating a budget for the amounts that you are required to withdraw from your retirement accounts.

Portfolio Planning

Wondering about Bitcoin? Consider first if it fits within your investment portfolio. Carl Richards for the New York Times reminds us that investing is very different than speculating. Our decisions should be based on the process and not the outcome, which no one can actually predict. Plan your goals and focus on diversification and then decide if Bitcoin or any other investment opportunity is right for you.

Tax Confusion?

What will the new tax bills mean for you? At the moment it’s not quite clear. Accountants and tax advisors everywhere are watching with bated breath as we approach the current tax season where these new laws will take affect. The best advice in the article? Schedule your tax professional appointment early this year.

Confused by the Tax Bills? Be Glad You’re Not an Accountant

Early Retirement?

Do you dream of retiring at 55? Ever thought about what it would take to actually make this a reality? For many it means cutting all extraneous costs such as meals out or travel, but there are other ways to help take a few years off your career. Maya Kachroo Levine for Forbes highlights these strategies to begin in your twenties:

–Don’t start spending more because you’re making more
–Start saving more, and maxing out multiple retirement accounts
–Look for side work that you can sustain in the long term
–Focus on owning your home outright
–Find a sacrifice that you’re willing to make that most people deem, “necessary”
–Set up passive income streams.

For more, read her complete article, 6 Steps You Can Take In Your 20s To Help You Retire Before 60.

Musicians Filing Taxes

Here in #ATX, the self-proclaimed, “Music Capital of the World,” we play host to all levels of musicians. This article from Tom Tom magazine offers a great look at best practices for filling taxes as a working musician. Drummer and owner of Math LLC, a tax preparation service, Emily Kingan, gives detailed information on all things money from handling cash transactions to dealing with a multi-facited career. Tips from an Accountant: The Best Way for Musicians to Do Their Taxes.

Helping Yourself and Others After A Natural Disaster

Last week Hurricane Harvey swept through Texas and Louisiana leaving destruction in its wake. Now the Atlantic hurricane, Irma is causing great damage to the Leeward Islands with its eye set on Florida.

In the aftermath of a disaster, what are the best ways to help others and if you are affected by the storm, what should you do to expedite recovery?

The Federal Trade Commission offers a good overview of natural disaster best practices along with tips, advice and links to other agencies on their page, FTC Advice for Helping Hurricane Harvey Victims.

Repair or Improvement?

What is the difference between a home repair and a home improvement? As defined by the IRS, an improvement lasts for more than one year and adds value to your home. There are exceptions, such as when the upgrade is no longer part of your residence. (Ex. You installed wall-to-wall carpet years earlier and then replaced it with wood flooring.). In cases of fire damage and natural disasters, all work applies, from the smallest repair to the largest addition. Knowing these details is especially important when you plan to sell your home because it may help reduce the taxes you owe on profit.

Tax differences between home repairs & home improvements

How To Become Rich

Here in Austin especially, there are plenty of wealthy people who don’t wear the latest fashions or drive the best cars, an indication that they may already know the ten “secrets,” Jocelyn Black Hodes offers in her article for MarketWatch.com, 10 things rich people know that you don’t.