Tax Tips for High-Income Clients
In our new economy, the number of U.S. millionaires has risen dramatically to 7.1 million households compared to less than half that number just five years ago. While this is good news for the individuals, many of them don't realize the tax bite that they are about to face. What can the tax advisor provide to these individuals to reduce their tax liabilities?
- transfer stock options into a trust when they have a relatively low value;
- maximize tax-deferred contributions to retirement plans;
- maximize any stock losses;
- purchase municipal bonds;
- increase charitable contributions, including stock; and
- think carefully before cashing in stock to pay for remodeling, education or vacations because the stock could increase to such a level that it would have made more sense to borrow the money instead.
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Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.