|Thomas K. Moseley
Attorney at Law
Certified Public Accountant
1515 LaBelle Avenue, Suite 5
Ruxton, MD 21204-6616
410-339-7696 FAX 410-339-7698
Welcome to our pages. We know you will find many items of interest. As you browse these pages, jot down your questions and call us. We do not charge you for telephone calls, nor do we charge for initial conferences. If your inquiry is leading to chargeable time, we will let you know well in advance.
We want you to get the best financial and tax help possible. If you have a question which is not addressed here, please call us.
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It is our job to see that you pay no more tax than the law requires.
We monitor the changes in the tax law that affect you and recommend tax saving strategies. We will file all your tax returns and serve as your advocate in all tax matters.
If you are contacted by any government agency concerning your tax matters, your first call should be to us. We will take care of it so that you can get on with your business.
There is a certain mystique that has grown up around tax planning and tax-cutting techniques. We are here to put tax planning in plain English for you.
There are actually several basic tax-cutting strategies, and most plans involve one or a combination of them. In a nutshell, the strategies are:
Splitting income among several family members or legal entities in order to get more of the income taxed in lower brackets.
Shifting income from one year to another in order to have it fall where it will be taxed at the lower rate.
Shifting deductions from one year to another to place them where the tax benefit will be greater.
Deferring tax liability through certain investment choices and through pension plan contributions.
Structuring your affairs to obtain a tax deduction for some expenses paid for things you enjoy - a vacation home, for example.
Investing your money to produce income that is exempt from either federal or state income tax or both.
Today's tax laws are so complicated that unless your financial affairs are extremely simple, chances are you will benefit from at least occasional help from a tax professional. It is too easy to overlook deductions and credits to which you are entitled if you prepare only one return a year. Even the use of computer software is no substitute for the eyes of a seasoned tax preparer.
We prepare hundreds of tax returns every year. We know what to look for when your return is prepared. More importantly, you have someone to ask questions of during the rest of the year. And, we will put you on our mailing list to receive timely tax and financial information.
What are your chances of being audited by the IRS?
Click here to do a quick estimate.
We will act as your sounding board.
We will review your investment ideas with you and your investment advisor and suggest the best structure to maximize your after-tax return.
Don't ignore the impact of taxes on your investments. While taxes should not drive your investment strategy, understanding how taxes affect your earnings will help you minimize taxes and maximize your return. Consider these items:
Capital gains carry a favored tax status. Consider putting more dollars in investments that return capital gains.
You can take an annual deduction of up to $3,000 of capital losses in excess of capital gains. Consider balancing your winners and losers to maximize this deduction.
Investments which produce high taxable annual income can be given to family members who are in lower tax brackets, thereby saving taxes for the overall family group.
Depending on your tax bracket, you may benefit from investing in municipal bonds. The level of these investments may need to be adjusted as your total income picture changes.
(Use the excellent calculators at the end of this page.)
Start planning and stop worrying!
In a recent Gallup poll, 60% of those surveyed said they worried about their financial future.
There are a few simple steps you can take to help reduce your worries.
Put aside some amount regularly in savings or other investments. The compounding of earnings can be substantial. The longer your investment period, the greater the beneficial effect of compounding.
Invest in what you know. The better informed you are, the better your investment decisions will be. If you don't want to learn about investments, consider hiring a money manager and paying him or her to do your investing for you.
Diversify your investments. Have some of your money in an investment that is easily converted to cash in case of emergencies. The old adage "don't put all your eggs in one basket" is good advice when it comes to your investments.
Prepare an annual balance sheet, a list of all your assets minus all your debts. A comparison of your annual balance sheets will reveal your success at growing your retirement funds.
Plan where you want to be financially by retirement age. The calculators listed below will help you determine your savings requirements. Once you know how much you need to save, put your plan into action. Over 90% of Americans must rely on the government or others for assistance during retirement. With proper planning and diligence, you may be among those who can retire in comfort.
Don't use credit to purchase consumption items. Wait until you can pay cash for things which decrease in value. Borrowing money to purchase a home is usually a sound idea. Using credit to purchase household furnishings is not.
Monitor your investments to maximize your after-tax return. Use the calculator below to compare the long-term results of different interest rates. The differences can be dramatic.
Have your insurance agent do at least an annual review of your insurance needs to determine that you are neither under- nor over-insured.
The Magic of Compounding!
If you could have one of the following as your pay for thirty days' work, which would you choose? (A) $10,000 or (B) a penny the first day, two cents the second day, four cents the third day, eight cents the fourth day, and so on, with each day doubling on out to 30 days.
The $10,000 sounds very attractive, but the fact is that the penny doubled each day for 30 days adds up to over five million dollars. Of course, that is 100% interest compounded daily, a rate not available to most working folk. Nevertheless, you see the power of compounding your earnings.
Here are some easy-to-use calculators.
Do you know how much you need to set aside to fund a college education for your child?
How much must you save each month for your retirement?
What will your Individual Retirement Account (IRA) be worth when you get ready to start drawing on it?
You can get rough answers to these and other questions very quickly by using the following calculators and a few estimates on your part. If we can be of help or answer questions for you, please call us.
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Why don't you call us for a no-charge initial conference. We will discuss your financial and tax situation and help you determine how we would be of use to you. If your financial affairs are simple, it may be a short meeting. If you have extensive holdings, your needs are more complicated and should be treated accordingly.
Thomas K. Moseley