Tax Strategy Scan: Gray Divorce, and More

Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.

Mid-year 2016: An investment reality check: The middle of the year is a good time for an investment reality check that can improve the tax efficiency of a client's portfolio, according to The Register-Star. This includes looking at investments that generate interest or produce short-term capital gains, and dividing assets strategically among taxable, tax-deferred and tax-exempt accounts. -- The Register-Star

What’s the best corporate structure to protect small business owners? Choosing the right corporate structure determines a company's tax liability, according to Money. The options for business structure types include limited liability partnerships, Subchapter C or S Corporations, and limited liability companies. These structures offer different tax treatments for business earnings and create different tax saving opportunities for small business owners. – Money

Gray Divorce: What women who divorce later in life need to know: Older women should carefully examine the assets they receive in divorce settlements, according to U.S. News & World Report. Divorces are traumatic at any age, but so-called "gray divorces" can take a significant financial toll, especially on women. Female clients should be prepared to take a close look at three years of tax returns, as those records sometimes show different tax schedules that may not be necessarily disclosed during divorce proceedings. -- U.S. News & World Report

Pay $0 in tax on $100,000 of retirement cash flow: Seniors can have a cash flow of $100,000 in retirement without any tax liability, according to MarketWatch. This is possible by relying on a strategy that makes use of the favorable tax treatment on Social Security benefits, the 0% federal long-term capital-gains tax rate, and standard deductions and personal exemptions. -- MarketWatch