A “99-5” is a reference to IRS Revenue Ruling 99-5 that outlines the tax implications of federal income of a transaction taking place when an LLC with a single member (the limited company with a liability) to a partnership for federal taxes. Before we discuss the process and the guidelines that RR 99-5 provides, Let …
Financial planning that is well-thought-out can lower your tax burden. What exactly is financial planning? It focuses on purchasing and selling assets with a view toward tax savings. This is a matter of timing when buying and marketing and the type of account in which assets are held. Let’s get into the specifics. Retirement …
What Happens To Your Tax Obligation If You Have Proper Financial Planning? Read More »
If you’re an investor looking to sell the rental property you own, You are probably looking for the full range of tax-free income you qualify for, such as the tax-deductible closing costs. The tax implications of selling a rental property could be more costly than selling a primary residence since the IRS considers it an …
What Costs For Closing Are Tax Deductible When Selling Rental Property? Read More »
The tax incentive for a step-up basis is a vital estate planning tool because it allows property owners to leave the assets they own to their children on the “stepped-up” basis based on current value, not the amount they initially purchased the property for. This is especially relevant in the case of assets that have …
What Assets Receive An Increase In Basis At The Time Of Death? Read More »
Certain taxpayers have tax, income, or credits not included in Form 1040. But, these extra elements must be declared on the taxpayer’s tax return. This is where Schedules 1, 2, and 3 steps in. What Are The Schedules 1 & 2, And 3? Schedules 1, 2, and 3 are documents that are added to which …
What Are The Schedules 1, 2, And 3 On Tax Form 1040, And What Are They Used For? Read More »
If you earn an income through selling an asset like a business, piece of land, or stock shares, you could be subject to capital gains tax. Capital gains are taxed the same way as normal income and can be up to 37 percent or as low as 0%, dependent on the tax rate you fall …
Health Savings Accounts (HSAs) are often the answer to our healthcare issues. However, many who have utilized HSA accounts are aware that the client is accountable for their entire medical expenses until their annual deductible is met. The deductibles are often expensive, and if one must pay the total cash all at once, it puts …
When you sell an investment asset to make profits, you’ll pay capital gains tax on the profits. This can be a case of bonds, stocks, precious metals, cryptocurrencies, and other similar investments and commercial real property. The tax you be required to pay for the proceeds of a sale will depend on the time you’ve …
As you are rushing to decide on the sale of your property, one of the things that most people think about is selecting a qualified intermediary, also known as “QI” (a.k.a.” exchange accommodator” (also known as “facilitator”). In the end, aren’t they precisely the same? Aren’t all intermediaries who are qualified “qualified”? Yes, not necessarily. …
7 Questions To Consider Before Choosing An Accommodator For 1031 Read More »
You can receive a retirement pension payout after you cease working; however, is it considered income? This is a common question we get asked about pensions. You’ll experience numerous changes to your financial situation, and there’s plenty to know. How the government categorizes the pension benefits is among the most important. The quick answer is: if …
