Bond Rate Apples to Apples

You can be forgiven for scratching your head at the current bond market, and one of the more perplexing aspects of it is the yield curve in the municipal bond environment.  According to Bloomberg, the current average yield on muni bonds with a 1-year maturity is 2.66%.  But let’s say you want to take more risk and go out five years; what is your reward for taking that extra risk?  It’s actually negative; the average yield on 5-year bonds is currently 2.19%.

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2022 Inflation Act: Electric Vehicle Credits

The 2022 Inflation Act includes extension and modification to tax credits for clean vehicles. The credit for the purchase of new clean vehicles (which includes both plug-in electric vehicles and fuel cell vehicles) is extended through 2032, and modified, under the 2022 Inflation Act. The 2022 Inflation Act eliminates the current credit’s limitation on the number of vehicles produced by a specific manufacturer.

A new credit of up to $4,000 is also available for the purchase of a previously owned clean vehicle, subject to income limitations, through 2032. The 2022 Inflation Act also includes a new credit for up to 30 percent of the basis of a qualified commercial clean vehicle acquired after 2022 and before 2033.

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Tax Planning With Charitable Giving

You probably know that you can get an income tax deduction for a gift to a charity if you itemize your deductions. But there is a lot more to charitable giving. For example, you may be able give appreciated property to a charity without being taxed on the appreciation. Or charitable giving may be part of your overall estate planning. These benefits can be achieved, though, only if you meet various requirements including substantiation requirements, percentage limitations and other restrictions. We would like to take the opportunity to introduce you to some of these requirements and tax saving techniques.

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What Are the Tax Implications of ISOs?

There are two main types of stock options: incentive stock options (ISOs) and non-qualified stock options (NSOs). Both are subject to different tax rules. Knowing the difference is an essential part of your financial planning. Of the two, ISOs can be more complicated from a taxation standpoint.

An incentive stock option is an option granted under a plan, if the terms of the option and the plan meet certain Code requirements. By paying the exercise price, the employee acquires the optioned stock. An ISO may have an exercise price of no less than 100% of the stock's value at the date of grant of the option, but of course the stock may appreciate in value after the date of grant. If it does, the employee will be able to acquire stock by paying the lower exercise price rather than its current value.

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