Investing in municipal bonds can be a benefit due to the fact that the interest income they provide is generally tax-exempt. In order to realize the full tax benefits of municipal bonds, you have to be careful not to make the following mistakes. Low Interest Rates: Interest income from municipal bonds is usually much lower […]
interest
Be Careful Who You Loan Money To
A friend is in a pickle and asks you for a loan of $5,000 because they hit some hard times and have some bills to pay. Do you help out your friend and say yes, or simply say no. If you say no, then your friend may get upset, get behind with bills, but hopefully they […]
Should You Buy a Home or Rent?
Several years back when the real estate market was red hot, it was almost a no-brainer to buy a home. A year or two later your home appreciated by thousands of dollars and was worth much more than you paid for it. We all know that this is not true now, so does it make […]
Penny Wise, Pound Foolish
What do I mean by penny wise, pound foolish? Saving a penny, but it costs you a dollar. Here are a few examples: Extreme Couponing: I watched an episode of extreme couponing years ago and the first thought that came to my mind, aside from obsessive, is that the coupon clippers spend way too much […]
I Received a Notice from the IRS – Now What?!
If you receive a letter in the mail from the IRS, the first thing you should do is open it! It might not be as bad as you think. The most common notice I see is that a client forgot to include interest, dividends, or wages from a W-2 on their income tax return and […]
An Overview of IRS Audits
There are different types of IRS audits. The first and least complex is the correspondence audit, next is the office audit, and lastly and most complex, the field examination. I highly recommend to anyone who receives a letter from the IRS, or even the State of NJ, to contact their tax advisor as soon as […]