Our weekly roundup of tax-related investment strategies and news clients may be thinking about.
- Selling a vacation home? Plan ahead now or pay the taxman later: Selling that getaway home is not quite like selling a primary residence as far as the IRS is concerned, according to Realtor.com. Here’s a guide to what your client needs to know to avoid sticker shock when the tax bill comes. -- Realtor.com
- ETF picks for a retirement portfolio: Clients who want average income from their investments with moderate capital appreciation may want to include municipal bonds in their portfolios, according to an article from Zacks Equity Research. High-income investors stand to gain from muni bonds, which offer tax-free interest income. – Zacks.com/Nasdaq
- Use this investment strategy now and take the edge off your taxes: Investors who want to lower their tax bill next year may consider trading their actively managed funds for exchange-traded funds, according to CNBC. "ETFs do not issue capital gains distributions, and index funds almost never do," says a financial adviser. "This essentially creates a deferral of taxes on capital gains that active funds would create." -- CNBC
- 10 ways to improve and save on your commute: People can improve their commute in ways that not only do the environment good but also save on taxes, according to The Huffington Post. Costs from transit passes and vanpool expenses are paid with pretax money, making these costs tax deductible. For example, a $64 pass will cost about $48 to clients who are in the 25% tax bracket, and the cost will be reduced further by state and FICA taxes. -- The Huffington Post
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