Disclaimer - Income Tax

Disclaimer -

Ask a CPA Mom your Tax Question FREE?

IRS wants you to retire Financially Free!     We will answer your questions and give you options about how to become Financially Free when you retire

Tax answers/options when you sell your Home.      We will answer your questions about the tax free home sales and give you options on tax free exchanges

So, You got a letter from IRS?  We can help.    Letters from IRS are scary. We will answer your questions at no charge.

S-Corp, LLC, C-Corp, Partnership - Your Choice?    Selecting the correct Business Entity is confusing.  We will give you the tax options of each Business Entity.

How not to pay taxes when you sell income property.    We will explain how to do a tax free exchange & not pay taxes when you sell your income property.

  If you desire to ask a specific question feel free to contact us. 
Opinions are FREE.

Disclaimer * Income Tax

How to Use an Early Retirement Plan to Secure Your Future   
Scott Taylor

In fact many of these people had no intention of retiring and used these generous packages to move into second careers. They did not retire at all until much later, in their sixties. Nowadays, what most people mean by early retirement planning is not stopping work altogether but having the financial freedom to change their lifestyles, free from children and a mortgage.<p>
<b>Create Sufficient Wealth to Sustain Your Lifestyle on Meager Earnings</b><p>
First, it makes sense to try to estimate the amount of capital required. It pays to think of income and capital needs in real terms as it is easier to imagine an income need of, say, £35,000 per annum in today's money than the actual income needed once inflation has been factored in. We can allow for the effect of inflation by ensuring that we only use real returns, i.e. over and above inflation. We then need to look at how much there currently is in long-term savings and investments, pension funds and property, etc. It pays to be brutally honest and take a little time for reflection at this point because it is easy to build a plan in which you either have little faith or end up being hopelessly optimistic or pessimistic. Allowing for a realistic return, we can estimate how much these will be worth at the target date and calculate the shortfall, working back to create a plan to meet it.<p>
Once we know how much is needed, the fun starts. Investing for retirement is not just about putting money into a pension plan - it matters less how the money is held than that there is enough of it. Pension plans have the benefit of attracting income tax at the highest marginal rate and growth is free from additional UK taxes. At retirement, however, the balance remaining after the tax free cash of 25% has been withdrawn, must be used to provide an income and this is then taxed. For many, the tax rate in retirement will be much lower than their marginal rate whilst working. Even so, this can cause some problems with tax planning in retirement.<p>
Most other ways of investing do not have the benefit of upfront tax relief, although Venture Capital Trusts offer some for braver investors, but they can offer access and lower tax in retirement.<p>
<b>Navigate Early Retirement Planning with Ease</b><p>
The point at which you retire probably represents the single most complicated transition in personal finance. Nowadays, there is a bewildering range of choices for early retirement planning and the long term effects of a hasty decision can be catastrophic. The consequences of buying the wrong annuity or wrongly structuring drawdown (or unsecured) pension income can leave otherwise well thought out plans in tatters. Someone neglecting to inflation-proof their retirement income could find their pension halved in real terms over twenty years. A married person failing to ensure that the pension continues for their spouse on their death may be consigning them to a pretty bleak future in the event of an early death. Additionally, tax planning in retirement can be confusing for those used to PAYE.<p>
Those reaching the age of 65 benefit from an increase in personal allowance, enabling more of their income to be taken tax free. This, however, is gradually withdrawn for those on higher incomes leading to some pensioners paying a high marginal rate of 33%. Having greater flexibility, allowing, for example, for the annual Capital Gains Tax Exemption to be used can give rise to considerable tax savings, which is a low- risk way of enhancing investment returns since few people enjoy paying tax.<p>
With life expectancy for someone in their sixties stretching, perhaps thirty years ahead of them, buying an annuity on retirement is becoming less attractive to many. Thankfully, even those with pension schemes now have options. They may draw an income directly from the investment portfolio held within the pension, buy an annuity or use a combination of both.<p>
Drawing an income from the pension, now called an Unsecured Pension, is not for the poorly organised. The investments held must be carefully selected to match expectations of income, allowing for inflation matching, and allow for preservation of capital. No one wants to run short of income too early so a sensible level of income should be taken. Also, thought should be given to rebalancing the portfolio to maintain its risk profile and whether that risk should be changed over time.<p>
As with many planning exercises, it is imperative to allow sufficient time in advance for all options to be explored - it is never too early.

Article to continue below----------------------------------------------

Forest Law Gives Out Tax Breaks - And Shuts Out Some From Using Land (Dunn County News)
MADISON — When a century-old sportsmen’s club moved last year to enter more than 8,200 acres of North Woods timberland into a state program aimed at promoting sustainable forestry, leaders...


Article to continue below----------------------------------------------

Council Tax Down - But Not By Much (Romford Recorder)
HARD-pressed residents are in line for the first council tax cut in more than 15 years. Tory-controlled Havering Council voted to reduce payments by 0.4 per-cent - but dismissed plans to save even more...


With over twenty years experience in the financial services industry Scott Taylor has a wide-range of industry expertise. The co-founder of Fee Based Solutions, Scott is a passionately dedicated spokesperson for fee based advice and an advocate of a better deal for investors. Scott firmly believes in helping to drive the finance industry towards a more ethical and holistic approach.

Who are the CPA Moms?      Your Tax Professional Forever!!!!

“CPA Moms - Tax Moms - EA Moms" are trade names given to Accounting and Tax Professionals who chose to work in an “relaxed” environment. Some "Moms" work from home, other work from personal offices. Not all are Moms, there are some Dads. We call them Mr. Tax Moms. CPA Dads or Enrolled Agents Dads.
Each Mom is independent. Once a client starts working with a Mom, the client will keep the same “Mom” year after year regardless of where the client moves or relocates. Being in a “relaxed” environment has many advantages. Lower overhead, faster response time, more availability, etc.
To be a member a CPA Mom, Tax Moms, or an Enrolled Agent Moms the Tax Professional must ALWAYS be in good standing with their state licensing agency, experienced, and must demonstrate a high level of ethics, professionalism and proficiency.
Tax Net Inc, the parent company for all CPA Moms, Tax Moms and Enrolled Agent Moms, developed the marketing and on-line systems to help qualified Tax Professionals who "choose" work from their “relaxed” environment and offer better service at a lower price to the consumer.
Since the “Moms” do taxes and accounting of all complexities, there is always a Mom available for every level of work. Since each Mom has a private 800 number, you are just a phone call away, regardless of where you live.
For reliability and dependability of Tax Net, Inc, the parent company of the “Moms” organization click on the Better Business Bureau (BBB) icon.

To Join CPA Moms

Click for accredited member's reliablility report.

Privacy Policy    About Us    Disclaimer    Copywrited 2005  - 2010 & Developed by  Tax Net Inc

Index of Articles about Taxes

What Other Authors say about Taxes

How to Deal with C Corporation Tax by Nick Braun EA PhD

<p>The difference between C corporations and all the other entities is that C corps pay their own tax â€" they are not pass-through entities. <p>The corporation pays corporate income...

Advice on Internal Revenue Service Audits by Roni Deutch

It is important to keep in mind that the IRS computer system selects the returns that are audited, not human employees. The computer system selects returns that are likely to yield the most money to the...

Gambling Income and Expenses - Taxes by Richard A. Chapo

Hit a big one? With more and more gambling establishments, keep in mind the IRS requires people to report all gambling winnings as income on their tax return.Gambling income includes, but is not limited...

Get Help From A Tax Attorney by David C Skul

All the people have to handle tax problems, which can be very difficult if you have to manage these troubles by yourself. And things can get worse if one day the IRS comes knocking on your door. You don't...

Last-Minute Tax Help by David C Skul

Even if in most cases people don't want to hear about the word "taxes" until March, preparing early and staying organized will give you no headaches later. But, for most of the people, the deadline is...

In the articles shown above on this web site you will find information that has been collected from many independent sources. Each article or item may offers a different point of view, but not necessary that of the CPA Mom's. This information is for general information only.