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6. |
Rental
Income |
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If
you own rental real estate, rental income is taxable. However, you
can sometimes offset substantial rental income through income tax
deductions.
Look
for deductions that offset passive and active gains. If you've been
holding off on sprucing up the place, you may also want to consider
making some maintenance repairs. They might not only reduce your
tax bill, but increase your property's net worth.
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7. |
Begin
Receiving a Monthly Mortgage Check |
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Turn
your home into a tax-advantaged income-producing vehicle through
the use of a "reverse mortgage." By converting your home
equity into income, a financial institution can provide you with
a monthly check based on the total market value of your home.
Not
only does the "reverse mortgage" provide income, but can
help reduce taxes by removing one of your largest assets from your
estate. Avoid reverse mortgage scams, and do your homework ahead
of time. It could be well worth it.
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8. |
Use
Tax Credits to Reduce Your Tax Bill |
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Low
income housing projects often reveal tax advantages, as warranted
by Congress. Wealthy individuals often develop these properties
solely for the purpose of realizing credits, which offset you tax
bill dollar for dollar.
Private
individuals may still be able to take advantage of these credits
by pooling their interests and receiving a share of the tax credits.
There are companies that also create partnerships with investors
for the sole purpose of receiving low income housing tax credits,
prefunded by Congress.
Check
with a SaveWealth
Advisor to receive more information aboutt these tax credits.
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9. |
Social
Security Benefits |
|
If
you draw Social Security income, understand "provisional income."
If your provisional income falls beneath certain constraints, you
may not have to pay federal income taxes on your Social Security
benefits.
To
help determine your provisional income, be sure to check out the
official Social Security website.
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10. |
The
Disappearing Tax |
|
Uncle
Sam has eliminated the 15% excise tax on large distributions from
401(k) or other pension plans. However, if those funds remain in
the retirement plan when passing to your heirs, the proceeds will
be subject to both income and estate taxes at the same time.
This repeal of the excise tax presents an excellent planning opportunity
for millions of American retirement savers.
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Capital Gains |
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Mortgage and Equity |
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Education Tax Breaks |
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Gifting Options |
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Sheltering Rental Income |
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Using Your Unified Credit |
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Social Security |
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Tax-Free Munis |
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Estate Tax Reductions |
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Life Insurance |
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IRAs and 401k Plans |
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And much more |
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