Here are two ways to maximize your investments for you and your family…
Children under 18 years of age may earn up to $950 of investment income per year with no federal tax and no federal reporting requirements. This includes dividends, interest, and gains on sales of investments. One investment idea is US Savings Bonds which allow you the option to elect to report the interest every year instead of at redemption. Children may also earn an additional $950 in investment income and pay a lower child’s federal tax rate.
Qualified Section 1202 Small Business Stock is a wonderful opportunity to get in on the ground floor of a promising new business. Qualified small business stock shares held for at least five years before they are sold are exempt from federal tax upon sale!
The best strategy in uncertain economic times is to take a deep breath! Remember what’s important, such as peace of mind, integrity, and family. Best wishes for the new year, Christine Thibodeau, CPA
