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Welcome to this session of grand rounds, a collection of posts I have discovered in the blogosphere and have found of interest and hope you do too.

This offering of Grand Rounds looks at articles from around the web that deal with death and taxes.

 

 

The year 2022 has certainly been a tumultuous one for the stock market.

Many investors saw the all the gains they made from a remarkable 2021 bull run evaporate.

While most individuals know that Uncle Sam wants his fair share of the pie when you have made investment gains (capital gains tax), there maybe a few that do not know that the opposite holds true as well (that Uncle Sam is also willing to share the burden of your losses).

Having Uncle Sam foot some of the bill can certainly take some of the sting off losing money in the market.

This is essentially the principle behind Tax Loss Harvesting.

Tax Loss Harvesting does take a little more effort and it is up to you to decide if what you gain is worth it.

White Coat Investor discusses this in, “Is Tax-Loss Harvesting Worth It?”

 

 

Of course when we make an investment we do not expect it go down but instead hope for it increase in value so later we can sell it and enjoy the profit.

As mentioned above, all that profit cannot just go right into your pocket.

How much you get to keep depends on a lot of factors, including how much your annual income was.

Debt Free Dr. gives a primer on what you can expect in taxes as a high earner in, “Capital Gains Tax 101 For High Income Earners.”

 

 

Savvy investors plan for capital gains taxes ahead of time and find ways to either reduce it (such as holding an investment for longer than 1 year to avoid higher short-term capital gains tax margins) or kick it down the road, sometimes indefinitely (which in real estate can be accomplished with 1031 exchanges).

Passive Income MD gives his take on capital gains in, “Capital Gains Tax: An Unavoidable Reality.”

 

 

Tax season is right around the corner.

Although it is unfortunately too late to implement any methods to reduce your taxes from 2021 earnings, it is never too early to plan for your 2022 tax return.

Financial Residency gives some helpful tips to do just that in, “Tax Planning For Physicians: Concepts You Need To Know.”

 

 

A common inclusion in the wedding vows is “Until Death Do Us Part.”

Well at a certain point, if you are lucky and stay married, that vow will become valid.

Sadly the IRS will not sympathize with the surviving spouse’s situation.

In fact the IRS adds more salt to the wound by raising the survivor’s tax burden, often referred to as the “Widow’s Tax.”

What exactly is the Widow’s Tax?

Fear not the reaper and find out more in an article by FI Physician, “Widow’s Tax: Tax Increase after Loss of a Spouse.”

 

 

Hope you enjoyed the reading material.

Have a great rest of the week.

 

 

Note:

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