Tax Strategy Scan: The Tax Cost of Dividend Investments
Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
6 problems with dividend investing: Dividend investing maybe popular, but it doesn't always deliver as promised, according to Kiplinger. For one, dividend investments can come with hefty tax consequences. Even if a client holds on to these investments for over a year for better tax treatment, they will still be paying taxes annually, which hurts investment returns. -- Kiplinger
Last-minute tax tips for entrepreneurs in 2016: As the year comes to an end, here's what entrepreneurs should be keeping in mind to prepare for their tax payments in the final quarter of 2016, according to CNBC. Are there late fees and penalties to consider? This also may be a good time to start a retirement account, since they qualify for deductions on contributions they make as employer. -- CNBC
Index Funds and ETFs: Tax-efficient, but not always: While index funds and ETFs are popular for their low costs and tax efficiency, clients should take a close look at them before making the investment, according to Morningstar. From a tax perspective, some of these funds could actually turn out to be inefficient. -- Morningstar