It’s tax time. And many of your clients are scrambling to get forms together, fund that IRA they set up in December, or get the cost basis of grandma’s stock they sold to pay her retirement home expenses. It’s also a prime time of vulnerability. Scam artists are everywhere; they’re not just in your inbox. They’re also of the face-to-face, snail mail, landline, and online varieties. And they can be pretty inventive. Here are some things you should help your clients watch out for:
Identity Theft: Your client gets an email notice saying they submitted more
The media focus on Mitt Romney’s wealth and the amount of tax he pays brings attention to the difference in capital gains and ordinary income. The two are quite different, starting with their tax rates. Capital gains are taxed at a rate of 15%; ordinary income carries a top rate of 35%. Deciding which category income falls under is the trick. Carried interest received as a private equity partner and on real estate investments is an example. Romney’s tax experts classified his as capital gains rather than ordinary income.
This treatment differs from that received by doctor
Thursday was International Women’s Day. It is a great reminder that women investors may have different concerns. Women may need education on what they need to know. For example, it’s a good idea for women to not only know what’s on their own tax return, but also what’s on their spouse’s. They may not be aware of all the deductions they can take; if they own a business, they may not know how their business structure affects their tax status.
Understanding tax returns, how the tax liability was calculated, and what the IRS expects is critical to anyone&rsq
Senate Finance Committee Chairman Max Baucus Tuesday said he will release a modified mark-up of The Highway Investment, Job Creation and Economic Growth Act of 2012 ahead of the Committee's consideration of the bill.