Tax Tips

Please learn from my mistakes in tax planning.

1. If you own stocks, bonds, or mutual funds, keep careful records of the following for each purchase or mutual fund distribution:

a) The date
b) How many shares were purchased
c) The net cost

I probably spent 80% of my time researching capital gains distributions. This was a major pain.

2. DO NOT GIVE A GIFT OF SECURITIES THAT HAVE A CAPITAL LOSS! If you want to gift those securities, sell them and gift the proceeds as cash. Giving a gift of securities is complex, but it offers some tax sheltering opportunities.

3. Try out TaxACT tax preparation software. It is free to try, and the deluxe version is a fantastic value.

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