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Understanding the Kiddie Tax: What Families Need to Know

If your child earns income from investments—like dividends, interest, or capital gains—you may need to consider how the kiddie tax could impact your family’s tax situation. Designed to prevent income shifting between generations, this rule applies when a child’s unearned income exceeds $2,600 for the 2025 tax year. While the first $1,300 is tax-free and

Consider tax loss harvesting to reduce your tax liability

First, what is this harvesting? – no, you do not need to live in a farm. Tax loss harvesting is selling investment with a loss (take that capital loss) and apply against the capital gain of profitable investments. Example 1: Sold share of X Inc with a $5k loss (purchased at $7k and sold at

By |2025-01-07T08:21:42+00:00December 14th, 2024|Categories: Individuals|Tags: , , , , , , , , |
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