How to Avoid Large Tax Surprises
While no one really enjoys paying taxes, we all know it’s a given. What makes it worse is getting hit with a tax bill that you never expected. Certain moments in our financial lives can and will trigger tax events so we want to make sure you’re mindful of them, explain what they are, and share some ways to stay ahead of these tax surprises.
In this episode, we’re breaking down the tax rules that allow married couples to keep a large chunk of their profits from a home sale tax-free, and how to avoid any nasty surprises that could arise from going over the limit. We’re also illuminating potential tax shocks that can emerge when rebalancing or liquidating investments or taking required minimum distributions from your retirement accounts.
Here’s some of what you will learn in this episode:
- Understanding the rules when you sell your primary home and what’s considered profit.
- What might trigger tax events when you’re making large changes or transfers in an investment portfolio.
- What steps can you take to minimize your RMD taxes before you start withdrawing that money?
If you have any questions about what we discussed or anything else in your financial plan, email us at ask@bulmanwealth.com.
Show Sources:
https://www.kiplinger.com/retirement/retirement-planning/605109/is-your-retirement-portfolio-a-tax-bomb
https://fnrpusa.com/blog/how-
