- How the LLC Pass-Through Taxation Works
Limited liability companies (LLCs) are what’s called “pass-through entities.” This means that the business does not pay corporate income taxes. Instead, the individual owners or members of the LLC collect its proceeds as income and then pay personal income taxes… read more…
- How to Find a Small Business Tax Advisor
Small business owners can identify tax advisors by asking for recommendations from other professionals such as accountants, seeking personal referrals, checking out professional directories and following leads from advertisements. Before seeking help from a tax advisor, business owners will want… read more…
- Capital Gains Tax on Real Estate Investment Property
Real estate investments can be lucrative assets. However, they can also incur capital gains taxes that weaken your profits. Fortunately, you can implement tactics that reduce capital gains taxes so you can keep more of your money. Although the IRS… read more…
- Real Estate Investing Tax Strategies
When you’re starting with any investment, it’s always good to be aware of the tax implications. This is especially true when investing in real estate. Because the government wants to encourage real estate investment, there are several real estate investing… read more…
- What Are Trust Fund Taxes?
Trust fund taxes are a common form of tax withholding. These are the taxes that W-2 employers withhold from their employees’ paychecks for Medicare, Social Security and income tax programs. They are otherwise known as payroll taxes. Let’s break down… read more…
- Flipping Houses and Taxes: A Real Estate Guide
Flipping houses can be a lucrative business. But don’t let the idealized house-flipping TV shows affect your view of how it works. You need to be experienced, funded and knowledgeable about what you’re doing. That’s especially true when it comes… read more…
- How to Calculate the Marginal Tax Rate
Marginal taxation systems like the U.S. federal income tax system increase the percentage of income owed to taxes as a taxpayer’s income increases. There are seven income brackets. Your marginal tax rate will also be affected by your filing status,… read more…
- How to Avoid Depreciation Tax on Rental Property
It can pay to be a responsible rental property owner. For instance, if you’re always investing in your rental property and making improvements, not only will your tenants appreciate it and remain tenants longer, you can get a depreciation deduction… read more…
- What Are Long-Term Capital Losses?
A long-term capital loss refers to money that you lose on investments held for more than 12 months. The alternative is a short-term capital loss, money lost on investments that you held for less than a year. When you do… read more…
- How CDs Are Taxed: Tax Planning Guide
Since the Federal Reserve has raised its federal funds effective rate to the highest since December 2007, interest rates on various types of loans have also increased. That’s bad news for anyone trying to take out new loans like mortgages or… read more…
- Do I Have to Pay Tax on Inherited Savings Bonds?
Inheriting savings bonds can provide you with an unexpected windfall. However, there’s one important question to ask: Do I have to pay tax on inherited savings bonds? The short answer is yes, you generally will be responsible for taxes owed… read more…
- Is Long-Term Care Insurance Tax Deductible?
Long-term care insurance can be an important part of planning for the twilight of your life. Despite everyone hoping they’ll be healthy and active until the end of their days, most of us end up needing a bit of help… read more…
- How to Avoid Capital Gains Tax on Collectibles
Collecting is a pastime to which a great many people are drawn. The satisfaction of having a complete set of old stamps or unearthing a rare bottle of wine is quite easy to understand. However, a less easy-to-understand aspect of… read more…
- How to Avoid Capital Gains Tax on Mutual Funds
In the long run, if you sell an investment asset for a profit you will owe capital gains taxes. But for active investors, it’s important to understand that the IRS gives you a few ways to defer those taxes. This… read more…
- Trust Tax Rates and Exemptions for 2026
A trust is a legal entity that holds money and assets for future distribution or management. For example, you might create a trust for your children’s college education, putting money into it which they can withdraw when they go to… read more…
- How to Avoid Capital Gains Tax on a Business Sale
There’s a lot to consider when selling a business and tax planning is at the top of the list. When you sell a business or business assets at a profit, the IRS expects to receive a cut in the form… read more…
- How to Avoid Paying Taxes on a Lawsuit Settlement
Winning or settling your lawsuit can be exhilarating. After you’ve received the settlement money and paid attorney fees, most people assume that the rest is theirs to keep. However, some settlements are subject to taxes. And, unfortunately, many people don’t… read more…
- How Savings Accounts Are Taxed
You are required to report and pay federal taxes on any interest income you receive from a savings account. The income is taxed as unearned, which means you’ll escape payroll taxes, but you will owe federal income tax on it… read more…
- Differences in Hiring a Tax Preparer vs. a CPA
If you’re like most taxpayers, you may not need either a tax preparer or a certified public accountant (CPA). There are exceptions, though. Maybe you’re self-employed, own a small business or have lived in several jurisdictions. In these cases you… read more…
- 7 Tax Saving Strategies for High-Income Earners
Earning a higher income can mean paying more in taxes at both the federal and state levels. You might assume that you’re stuck with a bigger tax bill because you earn more but that’s not always the case. There are… read more…
- How Much Should You Save for 1099 Taxes
Working as an independent contractor or small business owner can bring tremendous freedom—but it can also bring headaches at tax time if you’re not careful. In addition to filing income taxes each April, you’re also required to set aside money… read more…
- What Is the ISO AMT?
If incentive stock options (ISOs) are part of your compensation package, knowing what they are, what they can do for you and how their tax treatment is going to affect you in the future is important. At the very least, you have to determine how they will affect your federal income taxes when you exercise… read more…
- How to Avoid the Gift Tax
The gift tax is a tax levied on any unilateral transfer (a gift) from one person to another. The federal tax is aimed partially at making sure wealthy families don’t use gifts to bypass the estate tax. The federal gift… read more…
- What Is the Convenience of the Employer Rule?
Remote work has become more popular in recent years and is among the many trends that have accelerated due to the COVID-19 pandemic. While remote work is not new, the rise in the number of people working remotely has created tax challenges for some employees and states. As a result, some states have adopted the… read more…
- What Is a Tax Loss Carryforward?
A loss carryforward lets a taxpayer use a loss incurred in one year to reduce tax obligations in a future year. Businesses and business owners can carry forward net operating losses when expenses exceed income. Individual investors can carry forward capital losses after selling investments for less than they paid. For help with taxes and… read more…