Retiring and moving to another state? Know about possible taxes
When many retire, they want to move to another state for multiple reasons. Before you move, you should be knowledgeable about the state and local taxes of the state/town you’d like to reside in. However, establishing residency for tax purposes might not be as simple as you think.
Finding which taxes are relevant
A big motivation for moving to another state may be no personal income tax. However, many states that don’t tax personal income may have other taxes such as property, sales, and estate taxes.
Be prepared for an IRS audit
The 2018 (fiscal year) audit statistics were recently released by the IRS. It showed that fewer taxpayers had their returns examined compared to prior years. However, this will be of little consolation if you are one of the few that are chosen for an audit. Understanding how and why an audit is conducted may better prepare you.
Tax Implications of Selling Your Home
The best seasons for selling a home are spring and summer. With spring in the air and summer right around the corner, buyers may be out in full force in your area. An added bonus for buyers is the current interest rates. The average 30-year fixed mortgage rate was 4.3% during the week of May 2, 2019, while the 15-year mortgage rate was 3.68%. This is down 0.41 and 0.43%, respectively, from last year.
Before you decide to sell your home, you should take into account the tax considerations.
Hiring your children may save you on taxes
If you are a business owner, there are tax breaks and some nontax benefits when hiring your children. The benefits are all around. Kids can obtain valuable life experience through their job while at the same time, learning how to manage money and save for college. The benefits you could receive are the ability to: