Our weekly roundup of tax-related investment strategies and news clients may be thinking about.
Roth conversions: Divide & conquer: Clients looking to do Roth conversions should plan on making several of them for greater tax benefits, according toBusiness Management Daily. Typically, clients should divide things up based on asset classes, instead of sinking the entire boatload into a single Roth IRA. --Business Management Daily
5 carryovers to remember when preparing 2016 taxes: Clients may want to comb through their 2015 income tax returns for hidden gems, including unused losses, deductions, or tax credits that must be carried forward to 2016, according to MarketWatch. The burden is on the client to identify and remember to use these items in tax planning and preparation. -- MarketWatch
Property exchange can defer, not avoid, tax: The like-kind exchange or 1031 exchange allows business or investment property owners to exchange a property they own for a similar property or properties. However, these exchanges are only good for deferring taxes, not avoiding them, according to The Cincinnati Enquirer. Clients can escape paying taxes during the year of the property swap. -- The Cincinnati Enquirer
Everything You Need To Know About In-Service Rollovers: Employees who are 59-1/2 and work at companies that allow in-service rollovers may be able to transfer their part or their entire company-sponsored 401(k) to IRA accounts, according to the Huffington Post. After creating their IRA accounts, clients can request an in-service rollover check from their company’s benefits department, which should be deposited within 60 days to avoid tax penalties. -- The Huffington Post
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