There may come a time when you want to sell your rental property. After putting in all the time dealing with toilets, tenants, and trash, you're looking to cash in and relax. But there's one problem: Taxes. Despite common wisdom, you may be able to avoid them. While death is inevitable, there actually are two ways to avoid capital gains taxes on the sale of rental property. ... Read More
Taxes
If My Bitcoin Investment Climbs, What Will I Pay in Taxes?
Investment styles may come and go but the taxman will always be there ready to share in your wealth. As Bitcoin and other block chain investments have attracted lots of attention, there is an inevitable question I get during tax season: If my Bitcoin investment climbs, what will I pay in taxes? Bitcoin has been around since 2009. Before 2011, Bitcoin value bounced around in the spare change ... Read More
Are Gifts to Parents Tax Deductible?
Raise your children well. They may choose your nursing home and may even provide financial support in your old age. If you're lucky to have a child who turns the tables on you and provides you with support, you may get a question like I did: Are gifts to parents tax deductible? A taxpayer sends a portion (about $1,500 each month) of his income to his parents who live overseas. While he is ... Read More
8 Tips Before You Donate
Hurricanes, floods, wildfires, and more. All of it has many of us wondering how we can help. Charitable donations are a great way to give back. And with the year-end coming, it’s a good time to consider potential 2017 tax savings. Before you do anything, check out these 8 tips before you donate. For more on the subject of charitable giving tips, you can also check out this article by Inc.com: 1.) ... Read More
End of Year Financial Checklist: 6 Steps to Get Prepared
It’s Almost the End of Year. Here’s Your Financial Checklist with 6 Steps to Get Prepared. Sadly, summer is behind us (unless you live below the equator). And with school and after-school activities in full swing and holidays approaching, the last thing you probably want to think about right now is finances. You’d probably rather be hanging out in flip flops as long as you can. But by taking ... Read More
Is Monthly Income from Divorce Taxable?
As part of my divorce planning practice, I often work with clients to help them chart out their cash flows and projected tax issues to help reduce surprises. Sometimes folks can be confused about what is taxable income. A common question: Is monthly income from divorce taxable? In one case, a woman asked if the monthly benefit she received from her ex-spouse’s military pension was taxable since ... Read More
Avoid Costly Mistakes When Buying Real Estate in Retirement
You're ready to retire and tackle your bucket list. On your list is buying that dream home in retirement. But how do you pay for it? You should avoid these costly mistakes when buying real estate in retirement. Whether you want to buy your dream home by the lake or the ocean of somewhere more exotic, you're probably wondering how to make this dream a reality so you can cross it off your ... Read More
You Sold Your Business. Now What?
You've worked hard. And now you want to enjoy your rewards after having invested blood, sweat and tears building your business. If you're lucky you get someone or some company to buy you out. Before you pop the cork off that champagne bottle, you better get your ducks lined up. You sold your business. Now what? You Sold Your Business. Now What? Most every business owner and entrepreneur has one ... Read More
Chef Anthony Bourdain in Hot Water with the IRS
Famous Chef Anthony Bourdain Didn’t Pay Taxes for 10 years— Sounds good, right? But here’s What Can Happen. Like celebrity Chef Anthony Bourdain you can get in hot water with the IRS. Taxes. There’s no escaping them. And if you try, you could be in hot water with the IRS — no matter who you are. At age 44, famous chef Anthony Bourdain never had a savings account and hadn’t filed his taxes for ... Read More
Tax Corner: Can I Still Deduct an IRA When Contributing to 401k Plan?
Here's the latest question to the Tax Corner: Can I still deduct an IRA when contributing to a 401k plan? Does any participation in an employer sponsored plan make one ineligible to participate in a self-directed IRA? Question: I have two part-time jobs. 95% of my wages are generated at job #1 where no 401K plan is offered. I work infrequently at part-time job #2 where a 401K plan is offered and ... Read More
