Before I get into more somber topics, I want to take this brief moment to wish you all a warm and fulfilling Thanksgiving. 
As you finalize your Thanksgiving plans, be sure to reserve a seat at your table for an extra guest:  Uncle Sam.
Have you ever asked yourself how much of the cost of your Thanksgiving feast is owed to the fact that the government takes a big bite at it in hidden taxes?  The Americans for Tax Reform Foundation and the Center for Fiscal Accountability have calculated just how big that government “tax bite” for Thanksgiving is, and it clocks in at a whopping 40.91 percent.
While Thanksgiving and Taxes are both American traditions, I’m sure we would all agree that Thanksgiving is a much nicer tradition than taxes.   But, since calendar 2011 is rapidly closing, I thought it was more prudent to re-remind you about year-end tax issues and planning opportunities.  I have again enclosed my reports on Required Minimum Distributions (see report HERE) and urge you to check twice that you have indeed satisfied the IRS requirements for both IRA’s , as well as, your 401k’s, 403b’s and 457 Plans.  Remember the penalty for making a mistake is a whopping 50%!  Call Sharyn if you are unsure.
Similarly, I’m enclosing a report about the potential benefits of “tax-loss harvesting” (See report HERE).   You might be able to sell assets, realize a loss and buy back similar positions in a short period of time.  Meantime, you may carry these losses forward into future tax years to be applied to gains (or when assets have appreciated).   This can mean real and significant tax savings and brighten an otherwise dismal performance in portfolios.
If you are like many of my clients and millions of Americans, your investment portfolio may contain underwater variable annuities.  I have found many clients looking for an opportunity to surrender their underperforming variable annuities, but they are hesitant to lock in losses and potentially incur additional surrender charges.
By working in conjunction with my team of CPAs, I have helped my clients rid themselves of these underperforming assets.  Non-qualified variable annuities are treated differently than stock and bond losses and may be deductable against your ordinary income. This enables clients to surrender their contracts in favor of more suitable, better performing investments and recognize only a portion of the losses.
There are plenty of reasons someone might contemplate liquidating underwater variable annuities, but the tax implications may be the icing on the cake you’ve been looking for!
Call me today at (781) 556-1038 to schedule a time we can review this opportunity.  My team of CPAs will provide a thorough analysis of your specific tax situation and provide you with a tax projection to determine if this strategy is right for you.  

 

 

 

 

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