The Motley Fool Investment Tax Guide 2001: Smart Tax Strategies for Investors

by Lewis, Roy A.; Maranjian, Selena

• ISBN13: 9781892547149
• ISBN10: 1892547147
• Format: Paperback
• Copyright: 2001-01-01
• Publisher: Motley Fool

Summary

If just hearing the word "taxes" makes your eyes glaze over, this book is for you. Too many people put off thinking about taxes until mid-April and then prepare their returns in a hurry. Take a little time to read this book and you'll find a little planning and strategizing throughout the year can save you a lot of money.

Table of Contents

Introduction	ix
First Things First
Your Tax Return	1	(4)
What's My Rate	5	(3)
How Deductions Work	8	(1)
How Credits Work	9	(2)
1040 Good Buddy: A Cacophony of Forms	11	(4)
Filling Out Your Return	15	(1)
Records to Keep	16	(4)
Putting Your Computer to Work	20	(7)
Investor Tax Basics
Tax Law Changes	27	(8)
Capital Assets	35	(3)
Capital Gains and Losses	38	(12)
Selling Stock	50	(4)
Mutual Funds	54	(3)
Direct Investing Plans	57	(10)
Holding Periods	67	(3)
Interest and Dividend Income	70	(1)
Worthless Securities	71	(2)
Dividends Paid on Shorts	73	(2)
Wash Sales	75	(3)
Stock Splits	78	(5)
Stock Spin-Offs, Split-Ups, and Buyouts	83	(2)
Hedging and the Constructive Sale Rules	85	(11)
The Alternative Minimum Tax	96	(5)
Stock Options	101	(4)
Investment-Related Deductions and Credits	105	(5)
Estimating Taxes	110	(6)
Traders and Taxes	116	(9)
Investment Club Taxes	125	(1)
Finding a Good Tax Advisor	126	(5)
Marriage and Family
Filing Status	131	(4)
Dependents	135	(3)
Marriage	138	(7)
The Kiddie Tax	145	(3)
The Child Tax Credit	148	(4)
Dependency Exemptions for Children of Divorced Parents	152	(2)
Child and Dependent Care Credits and Flexible Spending Accounts	154	(3)
The Earned Income Credit	157	(8)
Adoption Expense Credits	165	(7)
Family Income Shifting	172	(9)
Foster Parent Issues	181	(1)
Family Loans	182	(4)
Custodian Accounts	186	(4)
Gift Issues	190	(8)
Education
Deducting Education Expenses	198	(2)
The Hope Scholarship Credit	200	(4)
The Lifetime Learning Credit	204	(2)
The Education IRA	206	(4)
Interest Deduction for Higher Education Loans	210	(2)
Education Deductions and Credits: Interaction	212	(3)
Financial Aid Issues	215	(6)
Your Home
Home Sale Exclusion	221	(9)
Making Home Sale Capital Gains Disappear	230	(3)
IRA Withdrawals for Homebuyers	233	(1)
Deductions for the Purchase of a Home	234	(4)
Moving Expense Deductions	238	(5)
Your Home Office
Home Office Deductions	243	(8)
Travel Expenses and the ``Tax Home''	251	(8)
Itemized Deductions and Miscellaneous Credits
Medical Expense Deductions	259	(19)
Deductions for Taxes Paid	278	(5)
Deductions for Interest Paid	283	(1)
Mortgage Interest	284	(6)
Investment Interest and Margin Interest	290	(3)
Charitable Contribution Deductions	293	(10)
Casualty and Theft Loss Deductions	303	(6)
Miscellaneous Itemized Deductions	309	(5)
Miscellaneous Credits	314	(8)
Retirement Instruments
The Traditional IRA	322	(6)
The Roth IRA	328	(33)
Inherited IRAs	361	(7)
IRA Rollovers and Transfers	368	(8)
401(k) Plans	376	(3)
403(b) Plans	379	(1)
Simple Plans	380	(5)
Other Retirement Plans	385	(2)
Taxation of Social Security Benefits	387	(4)
IRS Procedures and How to Deal with Them
When You Don't Have the Money	391	(1)
Extensions	392	(1)
Reasonable Cause	393	(3)
Audits	396	(2)
Appeals	398	(2)
Tax Collection	400	(2)
Offer in Compromise	402	(4)
Timely Mailed = Timely Filed	406	(5)
Closing Thoughts	411	(10)
APPENDIX
A Fool's Tax Calendar	413	(2)
Resources	415	(6)
Index	421