August 2012

• Is Your Property Over-Assessed?

  
  According to the National Taxpayer’s Union, fewer than five percent of taxpayers challenge property tax assessments despite the fact that between 30 and 60 percent of taxable property in the United States is over-assessed. Because real estate values have dropped significantly in recent years and because most counties conduct property assessments only every three to five years, you may well be paying higher taxes than necessary on your home and/or business.
  
  The National Taxpayer’s Union also reports that among people who appeal their real property tax assessments, the majority are able to secure a lower adjustment – thus saving money on their property tax bill.

July 2012

• Construction Dividends

  
  For tax purposes, a constructive dividend is any payment to a shareholder which is not classified as a dividend by the company, yet is taxable as a dividend. Every disbursement that is not an expenditure for the corporation’s benefit – and also not a purchase, a loan, repayment of a debt, or an ordinary and necessary business expense – is considered a dividend.

June 2012

• Life Insurance Strategies to Avoid Taxes

  
  There is a wide variety of permanent life insurance policies, including whole life, universal life, and variable universal life insurance, which combine a death benefit with investment opportunities. Currently, the appreciation earned by investment options and the death benefit are distributed free of income tax. Furthermore, if certain types of trusts own the policy, estate taxes can be avoided as well.

May 2012

• Tax Harvesting Strategies for 2012 & Beyond

  
  The Jobs and Growth Tax Relief Reconciliation Act, also known as the “Bush tax cuts,” reduced the long-term capital gains tax rate from 20% to 15% in 2003. Due to the beleaguered economy, these tax cuts were extended for an additional two years and are currently scheduled to end December 31, 2012. Without further legislative intervention, the federal capital gains tax rate is expected to return to 20% on January 1, 2013.