It`s ISA Season In The UK
Individual Savings Accounts
Everyone likes to save money and keep as much away from the taxman as possible, so individual savings accounts are a popular option in Britain. It’s ISA season where banks and other ISA companies dangle great deals and better interest rates in an attempt to woo us to their stock or cash ISA.
At its heart, an ISA is simply a savings account where the interest accrued is not able to be taxed. In a traditional account, the interest is taxed at about 20 percent and higher for those with bigger pockets.
There are two primary types of individual savings accounts : cash and stock and shares. Continue reading
Taxes and Freedom
Doug Casey on Taxes and Freedom
The always-outspoken Doug Casey addresses a broader view of taxation and its costs to both individuals and society in general in this interview with Louis James.
L: Doug, the Taxman cometh, at least for most US citizens who file their annual tax papers on April 15. We get a lot of letters from readers who know about your international lifestyle and wonder about the tax advantages they assume it confers. Is this something you care to talk about?
Doug: Yes; something wicked this way comes, indeed. But first, I have to say that as much as I can understand the guy who flew his airplane into an IRS building, as we once discussed, I do not encourage anyone to break the law. That’s not for ethical reasons – far from it – but strictly on practical grounds. The Taxman can and will come for you, no matter how great or small the amount of tax he expects to extract from you. The IRS can impound your assets, take your computers, freeze your accounts, and make life just about impossible for you, while you struggle to defend yourself against their claims and keep the rest of your life going. The number of IRS horror stories is beyond counting. As the state goes deeper into insolvency, its enforcement of tax laws will necessarily become more draconian. So you absolutely don’t want to become a target.
L: So… just bow down and lick the boots of our masters? Continue reading
Structuring IRA Distributions To Avoid Penalties – Secure Harbor Planning: A Few Useful Ways
IRA Distribution Rules are a mine field. One incorrect move and you can discover yourself faced with high taxes and penalties that may wipe out years of savings and investment. Complicating issues is the Darwinian evolution of IRAs that have taken place since the pioneer IRA was introduced in ’74 with the enactment of the Employee Retirement Income Security Act (ERISA ). Since ’74, IRA rules have altered dramatically and legislation was enacted to rigorously punish those who don’t follow the rules, to the letter of the regulation. IRAs come in a lot of flavors but, for purposes of this article we’ll focus on the two chief types of IRAs: Traditional IRAs and Roth IRAs.
Techniques for Minimizing Penalties on Early Distributions
Normally, any distribution from an IRA before you reach age 59 1/2 is considered an early distribution and is subject to a 10 percent penalty on the taxable quantity received in a distribution. There’re certain Roth IRA information that can be used to avoid the burden of this early withdrawal penalty. Continue reading
What is Section 179 Depreciation?
Tax code “section 179″ is a recently implemented program courtesy of the US government that says: “any qualifying piece of property that a business entity purchases, can be written off for the full purchasing price”.
Ok then, according the IRS, a depreciation deduction is a reasonable allowance for the exhaustion, wear, and tear. (Including a reasonable allowance for obsolescence.) Continue reading
