Why would someone carry a credit card balance (with a 10 to 20 percent interest rate) while having money in savings earning next to nothing that could pay some or all of it off ? There actually are reasons that make some sense. See this posting in MarketWatch by Simon Constable for the details: http://echo4.bluehornet.com/ct/49922621:28343653836:m:1:2505976388:16031730955D7B4F97F764C655491894:r This article makes some good points for carrying a credit card balance in certain circumstances. I guess the old saying that ‘one size doesn’t fit all’ applies here. Each situation is unique and should be approached as such. For financial, accounting and tax musings, You can count on us to count for you! Email:bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Tax Musings of a Burbank CPA: Estate Tax Exemption for 2015 Is Announced
Well, it is official: the IRS has announced the Estate Tax Exemption and the annual gift exclusion for 2015. See the details here in this article in the Wall Street Journal by Laura Saunders: http://blogs.wsj.com/totalreturn/2014/10/30/estate-tax-exemption-for-2015-announced-by-irs As the article says, with the estate exclusion so high most people will not need to file estate tax returns when they pass away, tax planning in this area has moved away from minimizing the estate (except in large asset situations) and more toward capital gain tax and state income and estate tax savings (when applicable). It is quite a change from 15 years ago, when the exemption was under 1 million dollars and a lot of homeowners might have owed estate taxes. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Tax Musings: Deductibility Of Mortgage Interest On Your Taxes
The question nobody ever asks: is all the mortgage interest my bank form 1098s shows deductible? You are allowed to deduct mortgage interest if: 1. You took out your mortgages on first and second homes before October 13, 1987 – these mortgages are grandfathered into the rules and you can deduct all your interest. 2. You took out your mortgages on first and second homes after October 13, 1987 and you have $1,000,000 or less in regular mortgage and $100,000 or less in home equity debt (where you borrowed money and did not put the money into the house and did not refinance) you can deduct all your interest on these mortgage loans. You have to have the mortgages secured by the properties plus make all the payments in 1. and 2. to get the deduction. 3. If you refinance these mortgages, the additional money you take out may not be ‘acquisition indebtedness’, which means it could be considered personal loans and the interest on that part of the mortgage not deductible. If you don’t have home equity debt $100,000 of the additional mortgage refinanced can still be deducted, but the rest can’t. You will have to allocate the interest [...]