Leadership and Executive Development for women of all races, cultures and backgrounds
Issue link: https://diversitywoman.epubxp.com/i/385684
d i v e r s i t y w o m a n . c o m Fa l l 2 0 1 4 D I V E R S I T Y W O M A N 59 20 percent. If you've realized or expect to realize signifcant capital gains, con- sider selling some depreciated invest- ments to generate losses you can use to ofset those gains. It may be possible to repurchase those investments, so long as you wait 31 days to avoid the "wash sale" rule, says Harriet Greenberg. If you have appreciated stock that you are thinking of selling, consider trans- ferring the asset to your children who are not currently your dependents, ad- vises CPA Gail Rosen. To the extent that their taxable income would be taxed at a regular rate of less than 25 percent (for 2014, taxable income of no more than $36,900 for single returns), they can take advantage of the 0 percent rate for net capital gains. Consider adjusting your portfolio to buy stocks that pay qualifed dividends. Tese dividends are taxed at the maxi- mum capital gain rate of 15 percent (20 percent for those in the top ordinary in- come tax bracket). If you're a big income earner, analyze whether you should increase your allo- cation to tax-free municipal bonds and bond funds, says Gail Rosen. Te worst mistake you could make is to give in to inertia. Push thoughts of tur- key and mistletoe aside temporarily. You might also want to have preliminary dis- cussions with your tax preparer. DW Sheryl Nance-Nash is a freelance writer specializing in personal fnance, small busi- ness, and general business. smoke-cessation purposes, weight-loss program treatments (for obesity as diag- nosed by a doctor), and even fertility en- hancement can qualify for deductions, says Denise Frazier, a CPA with Cooper CPA Group. Leave nothing on the table Many more people than in the past are working from home. If you use part of your home for business, you may be eli- gible for the home ofce deduction. "Te new, simplifed option allows you to take a deduction of up to $1,500 based on $5-per-square-foot dedicated ofce space, up to 300 square feet," says CPA Gregg Wind. If you paid someone to care for your child (or spouse or dependent) so that you could work or look for work, you may be eligible for the child and depen- dent care credit of up to 35 percent of qualifying expenses. Depending on your adjusted gross income, you can claim up to $3,000 for the care of one person and up to $6,000 for the care of two or more, says Wind. Meanwhile, the Afordable Care Act provides a tax credit to taxpayers who obtain a quality health-care plan. When you purchase a health-care plan, the credit is typically received as a subsidy paid by the government directly to your insurance company in order to lower your premium. However, it is important to note that you can also choose to claim this tax credit when fling your income tax return. You can fnd out more at irs. gov/uac/Te-Premium-Tax-Credit. If you volunteer for a charity, deduc- tions are permitted for out-of-pocket ex- penses. For example, if you use your car while performing services for the char- ity, you may deduct a fat 14 cents per mile, plus tolls and parking. Review investment income Tis year, the capital gains rate for the top income bracket (39.6 percent) for individuals with taxable income over $400,000 ($450,000 for joint flers) is DW Life >