Taxes

If you're holding the winning ticket for Powerball's $366.7 million jackpot, don't forget about your silent partner: Uncle Sam.After rolling higher for about two months of three weekly drawings with no winner, the lottery game's top prize was nabbed in Wednesday night's drawing. The ticket was purchased in Vermont, which marks the first time the jackpot has been won in that state. Of course, the advertised amount isn't what the winner will end up with. Whether the prize is taken as an annuity of 30 payments over 29 years…

Kristo Kaarmann, CEO and co-founder of Wise.Eoin Noonan | Sportsfile | Getty ImagesThe CEO of £3.9 billion ($4.8 billion) fintech firm Wise is being investigated by U.K. regulators after tax authorities found he failed to pay a tax bill worth over £720,000.Kristo Kaarmann, who co-founded Wise in 2011, was recently fined £365,651 by Her Majesty's Revenue and Customs — the U.K. government department responsible for collecting taxes — for defaulting on the tax bill in 2018.At the time, a company spokesperson said Kaarmann…

As demand grows for specialized portfolios, a trend known as direct indexing is quickly becoming an option for more investors.  Rather than owning a mutual or exchange-traded fund, direct indexing is buying the stocks of an index to achieve goals like tax efficiency, diversification or values-based investing. Traditionally used by institutional and high-net worth investors, direct indexing is poised to grow more than 12% per year, faster than estimates for mutual funds and ETFs, according to Cerulli Associates. More from…

Guy Benhamou sends a picture of gas prices to friends while pumping gas at an Exxon Mobil gas station on June 9, 2022 in Houston.Brandon Bell | Getty ImagesIf you're self-employed or own a small business, you may soon be eligible for a little relief from soaring gas prices.Starting on July 1, the standard mileage rate — used to deduct eligible business trips in a vehicle on tax returns — increases by 4 cents to 62.5 cents per mile, according to the IRS. The new rate applies to trips during the second half of 2022.The rate…

More than 360,000 people left California in 2021, in what some are calling "The California Exodus" — many leaving for states like Texas, Arizona and Washington.And a rising number of former Californians are migrating out of the country altogether and are instead heading south of the border. Many are seeking a more relaxed and affordable lifestyle in Mexico.California continuously ranks high as one of the country's most expensive states to live in. The median asking price for a home in California is about $797,470 — only…

Jeffrey Coolidge | Photodisc | Getty ImagesThe IRS is working to boost its audit rates for the wealthiest Americans, according to a statement recently released with the agency's annual Data Book, covering activities for the 2021 fiscal year.While plummeting audits have drawn scrutiny from Congress, percentages have doubled for filers making over $100,000 to more than $10 million over the past seven months, according to the statement. What's more, audits of higher-income taxpayers often come later in the statutory period —…

David Jakle | Image Source | Getty ImagesIt's been a tough year for municipal bonds, with investors cashing out amid rising interest rates. However, higher yields and strong credit may be sparking a shift, experts say.While investors piled a record-breaking $96.8 billion of net money into U.S. muni mutual and exchange-traded funds in 2021, weekly inflows have been negative for most of 2022, according to Refinitiv Lipper data.Last week's numbers were still negative, but outflows slowed significantly, signaling more…

The Chinese central government has announced it is cutting the purchase tax on qualifying vehicles by 50% for the remainder of 2022 to help the vehicle industry and market recover from the recent Covid lockdowns, according to local reports. A notice jointly released by the Ministry of Finance and the State Tax Administration this week confirmed the tax discounts will be effective from the 1st June until the 31st December…

WASHINGTON—Business owners are likely saving more than $10 billion annually in federal taxes through state laws that circumvent the $10,000 cap on state and local tax deductions, according to a Wall Street Journal analysis of state data.The state laws blunt the cap’s effect on owners of closely held businesses such as law firms, hedge funds, manufacturers and car dealerships, while workers earning wages generally can’t take advantage. The strategy, now available in 27 states, converts business owners’ personal income…

We all hate ’em, but have to pay ’em, nonetheless. Taxes. That’s it, the dreaded word that sends the shivers down the spines of the uninitiated and the poor of this world. And for those futurists who see cryptocurrencies as the ‘cash’ system of tomorrow, fingers are pointing at you, too! Fear Factor One of the most worrying things people contemplating about investing in cryptocurrencies is in regard to taxes. I know, I know, one could say that’s the same with any investment, but the thing with cryptocurrencies — more so…