Thu03052015

News

Council considers freezing First St. development

Council considers freezing First St. development


Megan V. Winslow/Town Crier
A pedestrian walks along First Street in downtown Los Altos last week. Future construction on the street could soon be barred by an emergency moratorium on development.

Further construction along First Street could...

Read more:

Loading...

Schools

Santa Rita students put on Kranky Kids Radio Show

Santa Rita students put on Kranky Kids Radio Show


Traci Newell/ Town Crier
Neighborhood volunteer Lishka DeVoss, center, introduces members of Santa Rita School’s Kranky Kids Radio Club to their interviewee last week. The students star in the Kranky Kids Radio Show, which airs Fridays on KZSU.
...

Read more:

Loading...

Community

Music for Minors partners with Harvard to expand efforts

Music for Minors partners with Harvard to expand efforts


Palmer

When the thriving Music for Minors began to outgrow its capacity, the local nonprofit organization made new friends.

Beginning in late February, Music for Minors – a Town Crier Holiday Fund recipient – partnered with Harvard Business Sch...

Read more:

Loading...

Sports

Eagles make school history

Eagles make school history

Ellie Van Houtte/Town Crier
The Los Altos High School Eagles defeated Santa Clara High School Tuesday to advance to the Central Coast Section basketball finals Saturday.

The Eagles are headed where no Los Altos High boys basketball team has gone...

Read more:

Loading...

Comment

Dangerous streets: A Piece of My Mind

I’m driving along El Monte Avenue between Foothill Expressway and Springer Road at approximately 6 p.m. on a midwinter evening. In keeping with the “village feeling” of our town, there are no sidewalks and no streetlights.

Read more:

Loading...

Special Sections

Lions, lambs and Cab Franc for March

Lions, lambs and Cab Franc for March


Christine Moore/Special to the Town Crier
Oven fries, a slice of feta cheese and the bite of harissa mayonnaise make for a late-winter, early-spring dinner perfectly paired with Cabernet Franc.

I can’t help but wonder whether March will come in ...

Read more:

Loading...

Business

Los Altos scientist named Inventor of the Year

Los Altos scientist named Inventor of the Year

Alicia Castro/Town Crier
Robert Showen, above, the Silicon Valley Intellectual Property Lawyers Association’s Inventor of the Year, began researching his ShotSpotter technology in his Los Altos home. Sensors are placed around a city, below, and fou...

Read more:

Loading...

Books

French novel

French novel "Hunting and Gathering" offers character-driven suspense


Anna Gavalda is a well-known author in her native France, where she has published six books, most of which have met with considerable praise and commercial success. Her fourth novel, “Hunting and Gathering” (Riverhead Books, 2007), is filled ...

Read more:

Loading...

People

JACK JOSEPH CRANE

JACK JOSEPH CRANE

Long time Los Altos resident, Jack Joseph Crane, loving husband and devoted father of two children, passed away peacefully at the Terraces in Los Altos, Saturday, February 21, 2015. He was 95 years of age. Jack was born on June 22, 1919. He is prec...

Read more:

Loading...

Travel

Seoul of the city: Korean capital offers mix of old and new

Seoul of the city: Korean capital offers mix of old and new


Ramya Krishna/Special to the Town Crier
Seoul’s Cheonggyecheon public recreation space, above, features an elevated pedestrian bridge.

Seoul, South Korea, is a study in contrasts. Having grown quickly, the city is a mix of old and new.

Using...

Read more:

Loading...

Stepping Out

TheatreWorks jumps into ‘Lake’

TheatreWorks jumps into ‘Lake’


Kevin Berne/Special to the Town Crier
Jason Bowen, from left, Adam Poss and Nilanjana Bose star in “The Lake Effect,” opening this weekend at the Lucie Stern Theatre in Palo Alto and running through March 29.

The TheatreWorks production ...

Read more:

Loading...

Spiritual Life

Is your thought life sabotaging your spiritual journey?

My computer started having problems – there seemed to be some sort of malware running in the background. At first it was just annoying, then it began to slow down my computer, interfering with its basic operations. What is it doing? Why can...

Read more:

Loading...

Magazine

Local events serve up family fun

Local events serve up family fun


Courtesy of Peninsula Youth Theatre
Peninsula Youth Theatre’s production of “Pecos Bill: A Tall Tale” is slated to open March 20 in Mountain View.

For families seeking a break from the daily routine, events abound this month and next in Los Alto...

Read more:

Loading...

Tax gain harvesting a good strategy to avoid fiscal cliff

 

You may be familiar with the term “tax loss harvesting.” Toward the end of each year, many investors routinely sell assets such as stocks or mutual funds with embedded losses to offset the current taxes they will have to pay on gains from other assets.

This strategy generally works well during periods of steady or declining tax rates. However, if you really wanted to keep those stocks or funds and sold them solely for the purpose of taking tax losses, you would need to buy them back immediately after selling them.

The IRS doesn’t appreciate investors executing this maneuver for the sole purpose of deferring taxes. So they require you to wait 31 days or more before repurchasing the asset (or a substantially identical asset), otherwise they will add the loss to your cost basis and treat the sale as if it never happened. This is the wash sale rule and complying with it can make this strategy a bit tricky to execute.

This year we are facing the so-called fiscal cliff. Among other things, the 15 percent long-term capital gains tax rate has the potential to increase to 20 percent if Congress fails to restore some or all of the tax cuts set to expire Dec. 31. In addition, married taxpayers with incomes more than $250,000 will see their capital-gains tax rate go up an additional 3.8 percent to fund the Affordable Care Act (this one is a sure thing). Under these circumstances, tax loss harvesting probably doesn’t make sense. But you can do the reverse (tax gain harvesting), and it’s completely acceptable to the IRS.

The strategy involves selling assets with embedded long-term gains before the end of 2012, then immediately buying them back. The gains accumulated since the assets were originally purchased will be taxed this year at the current 15 percent rate, and any future gains will be taxed at the higher 2013 rates. Not only is this strategy simple to execute, it does not run afoul of the wash sale rule, because that applies only to losses, not gains. (The IRS is perfectly happy when you make your tax payments sooner rather than later.)

It’s important to remember that this strategy applies only to investments held in taxable accounts, not in retirement accounts like IRAs or 401(k)s. Because the money you put into the latter accounts was never taxed (except under certain circumstances), the IRS doesn’t care how much you paid for your investments. You will be taxed at the ordinary tax rates when retirement account money is withdrawn.

If you are a high-income taxpayer, tax gain harvesting in 2012 could save you at least 3.8 percent in taxes on your investments, unless tax rates go down within the next five years or so (a pretty unlikely prospect). For everyone else, you need to balance your expectations of higher tax rates – what are the odds that our lawmakers will reach a deal before the end of the year? – with your own cash-flow needs for this year and next. Don’t wait too long before having this conversation with your tax accountant or financial planner.

Los Altos resident Artie Green is a Certified Financial Planner with Cognizant Wealth Advisors. For more information, call 209-4062.

Schools »

Schools
Read More

Sports »

sports
Read More

People »

people
Read More

Special Sections »

Special Sections
Read More

Photos of Los Altos

photoshelter
Browse and buy photos