Benjamin Franklin once stated, “In this world, nothing is certain except death and taxes.” The IRS recognizes realized capital gain, regardless of whether you reinvest them. There are strategies investors can use to defer or reduce capital gains taxes depending on the investment amount and how long they were held. Tax-Favorable Retirement Accounts Stocks, funds, …

Are You Liable For Taxes On Capital Gains That Are Reinvested? Read More »

Retirement is when we can relax and get out of the workforce. While it is nice to take a break from the daily grind of life, income taxes still have to be paid. FICA taxes may be deducted from your paychecks if you are on a payroll. FICA (or Federal Insurance Contributions Act) is a …

Do You Pay Medicare Tax on Retirement Income? Read More »

IRAs have been popular investments since their inception in the mid-1970s. If you use IRAs correctly, you can make a tax-deferral or tax deduction strategy. This allows you to save taxes and still generate income until your retirement. Capital gain taxes on investment proceeds are another downside to some investments. Capital gains taxes on traditional …

Are Capital Gains On A Roth IRA Payable? Read More »

Many small businesses and independent contractors are working hard to file taxes on time as the 2018 tax deadline approaches. Small business owners often have to decide whether employer-provided meals can be taxed. Understanding the tax deduction rules for entertainment and meals can be difficult. It is important to understand the guidelines to report the …

Are Your Company’s Meals Taxable? Read More »

Capital gains should be one of your most important financial considerations when selling your property. Over the years, there have been many exemptions that have prevented certain sales from triggering capital gains tax. A home sale exemption was available to people over 55 years old. This exemption was not in effect since 2007. Anyone over …

Are Capital Gains Taxes Required for Seniors? Read More »

No matter what type of investment you make, it is important that you know how to legally apply for tax breaks to keep more money in the bank. You may be an investor for some time and know what options are available. However, if you’re new to investing, it’s worth learning about tax breaks that …

You can do a 1031 exchange with stocks Read More »

You can deduct expenses incurred when you rent a property or earn rental income. These expenses include property tax, mortgage interest, depreciation, repairs, and operating expenses. A tax incentive for homeowners is the mortgage interest deduction, which can sometimes be applied to rental properties. Mortgage Interest Deduction You can reduce your taxable income through the …

Can you deduct mortgage interest on a rental property? Read More »

A property sale creates a taxable event. Capital gains tax will apply if you made a profit from the sale of your property. However, there may be exceptions. Several options are available to reduce or eliminate capital gains tax when you buy another house. This depends on whether you intend to use the funds for …

How can you avoid paying capital gains tax by buying another house? Read More »

You can use a 1031 tax deferment on many types of investment property exchanges. An investor can use a 1031 Exchange to fund a new construction project. While the simple answer to this question is “Yes,” it can also be complicated. The IRS generally prohibits the use of funds from a 1031 Exchange for new …

Is a 1031 exchange allowed for new construction? Read More »

It is sometimes surprising that people confuse “tax evasion” and “tax planning,” but there are vast differences between them. One is illegal and can result in serious penalties (tax fraud). At the same time, the other is something that government and tax authorities take as a given (tax planning). Tax avoidance is a source of …

White and Black: Tax Planning vs. Tax Evasion Read More »