IRS recognizes the qualified retirement plan. It satisfies the requirements stipulated by section 401(a) in the U.S. tax code and ERISA guidelines. Most employers’ retirement plan programs are considered qualified and tax-free. It is important to note that a Roth IRA is not a qualified retirement plan. However, there are tax benefits similar for those …
President Biden proposes the elimination of a step-up in basis in inheritance property. Anyone who’s dealt with inheritance property knows how crucial the step-up of basis is. The step-up basis is essential if you’ve completed tax forms to sell your inherited property. For tax purposes, it’s called “fair market value.” We’ll look at tax forms …
How Do You Report The Sale Of The Inherited Property On A Tax Return? Read More »
Retail investors typically buy single-family homes or multiplexes for an exchange of 1031. The most well-off exchangers tend to seek high-value commercial investment properties to complete their exchanges, especially when they attempt to strictly follow the IRS’s “like-kind” requirement by exchanging similar classes of assets, for example, the office of a multimillion-dollar property in exchange …
The Best Way To Convert 1031 Exchange Property Into Personal Property Read More »
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 …
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 …
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 …
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 …
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 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 »
