By I was perusing the Internal Revenue Code (it’s one of the things I do) and started to think about the various sources of tax-free income.
Here are the 11 that jumped out at me:
- Roth IRAs
- Social Security benefits up to the taxable limits
- Tax-free IRA withdrawals (on top of tax-free Social Security)
- Home sale gains of up to $250,000 ($500,000 if married, filing jointly)
- Tax-free capital gains and dividends when you hit the sweet spot
- Capital gains sheltered with capital losses
- Stepped-up inherited assets
- Section 1031 real estate exchanges when held until death
- Qualified small business tax gains
- Section 529 college savings plans
- Coverdell Education Savings Accounts
When it comes to tax planning, tax-free tops the list.
If you would like to discuss tax-free income, please call me on my direct line at 408-778-9651.