Taxes

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Don’t let the hustle and bustle of the holiday season distract you into a hefty tax penalty come April. The Internal Revenue Service expects consumers to begin taking distributions from their retirement accounts starting in the year they turn 70-and-a-half or the year when they retire, whichever is later. Fail to do so and the …

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Accelerate deductions, harvest losses and time your investment income if you’re teetering close to the Medicare surtax line. Taxpayers who deploy such year-end planning strategies could significantly lower the 2014 tax bite from Uncle Sam. But they’d better act fast. The deadline for claiming current year deductions, in most cases, is Dec. 31. And it …

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Luxembourg old city

Here’s an international money riddle for you: What country is smaller than Rhode Island yet is the most attractive place for companies and investors to park their money behind the United States? Ireland? Cayman Islands? Try Luxembourg. The little grand duchy tucked away in the heart of Europe saw about $95 billion moved into the …

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It’s among the most popular tools available for maximizing after-tax returns. But unbeknownst to many investors, the practice of harvesting losses to offset capital gains also comes with some pretty sizable downside risks. Some say the benefit of tax-loss harvesting is overstated, that the net effect of selling securities that are down and buying them …

Coburn reveals Wastebook 2014

Senator Tom Coburn’s “Wastebook” outlines the top “wasteful” federal projects that cost taxpayers billions of dollars.

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There may be fewer changes to the federal tax code this year than in 2013, but the handful that exist could still impact what you owe. Some, like the new health insurance tax credit, could put more jingle in your pocket, while the expiration of more than four dozen temporary tax breaks that Congress has …

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A planned $2.7 billion deal between pharma companies Salix and Cosmo, motivated in part by the opportunity to do a tax inversion, has fallen through. “There has been a change in the environment after we struck the deal,” Alessandro Della Cha, chief executive of Cosmo, told CNBC in a phone call. “The (U.S.) administration has …

New tax rules may lead Medtronic to restructure deal

Medtronic will likely restructure the terms of its Covidien acquisition after the U.S. Treasury Department introduced new rules aimed at curbing tax inversions.

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The U.S. government has been promising a crackdown on tax inversion deals for months. Yet the measures announced Monday may not be enough of a disincentive for companies like Pfizer or AbbVie, which are tempted by the savings involved in snapping up smaller foreign rivals and re-domiciling themselves to avoid America’s labyrinthine tax system. The new rules, aimed at “when …

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The recent exodus of U.S. companies fleeing the country to lower their tax bill has a lot of people wondering: Are corporations paying their fair share of taxes? That depends on where you live—and whom you talk to. As the developed world becomes more tightly knit, corporate taxes are going to play an increasingly important …

Administration & tax inversions

The U.S. treasury is taking steps to block U.S. companies from reorganizing overseas to avoid taxes. What power does the administration have over these tax inversions?

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The debate around “inversions”—the process of American companies buying foreign companies to access capital and lower tax rates overseas—has reached the dinner table. But while the debate escalates over the dozen or so companies that are pursuing this endlessly wonky and complicated legal loophole, there are dozens more loopholes that companies are jumping through here …

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Below are the 20 companies in the S&P 500 that reported 0% (or lower) effective tax rates during the second calendar quarter of 2014 according to USA Today:

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Tax inversions may be coming to the hotel industry. The practice, wherein a firm buys a foreign company so as to move its tax domicile, has been derided by President Barack Obama as unpatriotic, but that has not stopped a wave of U.S. companies from fleeing to less taxed countries. Now, The Wall Street Journal reports that activist hedge fund …

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Chiquita Brands is one of the companies that did a corporate "inversion" deal this year

A once-obscure tax dodge known as a corporate “inversion” is turning the debate over U.S. tax reform upside down. In an inversion, a U.S. company sets up or buys another company in a country with a lower corporate tax rate and then calls the new country home—thereby dodging U.S. taxes it would otherwise have had …