Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
Tax breaks and smart strategies for handling student debt can help clients reduce the cost of higher education, according to the Motley Fool. For example, advisers can point out several tax breaks, including the American Opportunity Tax Credit, the Lifetime Learning Credit, and the deduction for student loan interest. Clients also can consolidate their student loans, which can reduce their monthly payment but risks losing some of the other benefits that various types of loans give them. -- Motley Fool
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Eligible taxpayers can now qualify for a waiver of the 60-day time limit and avoid possible taxes and penalties on early distributions, if they meet certain requirements.
August 25 -
Either a Clinton or Trump presidency could potentially bring changes in estate tax laws, so start preparing now.
August 29 -
The IRS has proposed regulations that could reduce or eliminate valuation discounts for the wealthy by the end of the year.
August 22
Here's how to offset a client's taxes with an IRA loss, according to MarketWatch. The key to figuring out how much of a loss is usable as a deduction depends on a client's 1040. The loss is reported as a miscellaneous itemized expense, which is limited to 2% of adjusted gross income. -- MarketWatch
Clients pay no taxes on company stock bought through a qualified employee purchase plan, according to CNBC. However, they will owe taxes when they decide to sell the shares. Capital gains tax rates apply if the client holds on to the company stock for more than a year. That's cheaper than paying income taxes. -- CNBC
