- How to Avoid Capital Gains Tax on Foreign Property
Selling property abroad can create tax obligations both in the country where the property is located and in the United States. While U.S. taxpayers must generally report and pay capital gains tax on profits from selling foreign real estate, several strategies can reduce or eliminate this burden. These include using foreign tax credits, qualifying for… read more…
- How to Buy Property With Delinquent Taxes
Buying property with delinquent taxes can seem like a hidden shortcut into real estate investing, promising low prices, unique opportunities and, in some cases, double-digit returns. However, the process works very differently from a traditional home purchase, and whether you end up earning interest or walking away with a property depends on the type of… read more…
- How to Pay Taxes on Stocks
If you sell stocks at a profit, you will owe taxes on those gains. Depending on how long you’ve owned the stock, you may owe at your regular income tax rate or at the capital gains rate, which is usually… read more…
- Writing Off Losses on Sale of Investment Property
Selling an investment property at a loss may not be ideal but it may be necessary if you need cash or you simply no longer wish to own the property. Before selling rental properties or investment real estate at a loss, consider how it could affect your taxes. For instance, you might be wondering whether… read more…
- How Do I Avoid Capital Gains Tax on Gold?
If you invested in gold and sold it for a profit, you are probably looking for ways to minimize your taxes. Smart tax planning is crucial for the success of your investments. And there are definitely ways to minimize capital gains… read more…
- How to Avoid Paying Taxes on a Divorce Settlement
Divorce settlements can be extremely complicated. While it makes eminent sense to work with a financial advisor as you plan your finances for a divorce, there are several key areas that can hold promise of avoiding or at least minimizing… read more…
- Capital Gains Taxes on the Sale of a Second Home
Capital gains tax applies when you sell an asset for more than you paid for it. While the IRS typically offers an exclusion for capital gains from the sale of a primary home, the rules are a little different when selling a property that you don’t live in full-time. Before unloading a vacation or rental… read more…
- Guide to Capital Gains Exemptions for Seniors
Current tax law does not allow you to take a capital gains tax break based on age. In the past, the IRS allowed people over the age of 55 a tax exemption for home sales. However, this exclusion was closed… read more…
- How to Avoid Taxes on Your 401(k) Withdrawals
A 401(k) plan is a powerful tax-advantaged tool for retirement savers. Employer matches offered by some plans make them even more potent. However, except in special cases you can’t withdraw from your 401(k) before age 59.5 Even then you’ll usually… read more…
- How Do I Avoid Paying Taxes on an Inherited IRA?
The standard tax rules on individual retirement accounts (IRAs) change when you’re dealing with inherited IRAs. Some differences are positive. For instance, someone who inherits an IRA doesn’t pay a penalty for early withdrawal before age 59.5. On the negative… read more…
- How to Avoid Paying Taxes on Your Annuity
An annuity is an insurance company product that sometimes appeals to investors who are risk-averse or who have contributed the maximum to their retirement accounts. One advantage of an annuity is that there is no maximum contribution like 401(k)s or… read more…
- How to Avoid Capital Gains Taxes on a Land Sale
Real estate continues to be an appealing asset class for investors as property values rise. While many investors choose to invest in homes or apartment buildings, others prefer to invest in raw land. There are fewer maintenance costs with no… read more…
- CPA vs. Accountant: Which Do You Need?
Accountants and certified public accountants (CPAs) are two types of financial professionals serving both individuals and businesses. Even though their titles are often used interchangeably, they perform different services. CPAs can do everything accountants do, but accountants cannot do everything CPAs do. CPAs can also perform audits and are professionally licensed, but accountants are not.… read more…
- How to Avoid Capital Gains Tax on Real Estate
Home prices doubled over the past decade – and that could mean you owe some serious taxes if you are selling your home. After bottoming out at around $259,000 in 2011, the average sale price of a house has marched steadily upward to more than $500,000 in 2024, before dropping down to $357,275 in January… read more…
- How to Avoid Capital Gains Taxes
Capital gains taxes can take a major bite out of your investment earnings if you don’t manage your portfolio specifically for them. The strategies that allow you to minimize the capital gains tax include holding investments for the long term,… read more…
- 401(k) Inheritance Tax Rules for Estate Planning
Inheriting a 401(k) comes with some complex tax rules. When the estate plan includes workplace plans and individual retirement accounts (IRAs), they’re treated differently than real estate or other assets. If you anticipate inheriting a 401(k) from a parent, a spouse, or someone else, it’s important to understand the tax liability associated with making withdrawals… read more…
- Inside Biden’s Capital Gains Tax Plan
President Joe Biden proposed doubling capital gains taxes for investors making over $1 million to fund his $1.8 trillion American Families Plan. This could compel some high-income investors to sell off assets before the tax hike takes effect. Others will… read more…
- Estate Tax vs. Inheritance Tax: Key Differences
Losing a loved one is a tragedy that requires space to grieve, and the last thing a family needs at that time is to deal with unexpected costs. However, there are federal and state-level taxes that need to be handled… read more…
- How to Avoid Paying Taxes on a Savings Bond
Savings bonds can be a safe way to save money for the long term while earning interest. You might use savings bonds to help pay for your child’s college, for example, or to set aside money for your grandchildren. Once… read more…
- Reducing Capital Gains Tax on a Rental Property
Receiving regular rental income can help you grow wealth in the long term and diversify your income streams. . However, income earned from a rental property isn’t tax-free money; you do have to pay the IRS taxes on it. Capital gains tax can also apply when you sell a rental property. To avoid these taxes… read more…
- IRS Form 5329: Reporting Taxes on Retirement Plans
When filing your taxes, it’s important to make sure you’re reporting all of your income correctly. That includes making note of early distributions from qualified retirement plans or other tax-favored accounts that may be subject to a 10% early withdrawal… read more…
- What Is Adjusted Gross Income (AGI), and How Do You Calculate It?
Adjusted gross income, or AGI, is extremely important for filing your annual income taxes. More specifically, it appears on your Form 1040 and helps determine which deductions and credits you are eligible for. Based on the amount of your AGI,… read more…
- What Is the Tax Rate on Stock Options?
For many employees in America, especially those at tech companies and other startups, stock options are a part of compensation packages. While the right to buy stock in a company at a set price is an attractive form of compensation,… read more…
- What Are the Tax Benefits of an LLC?
One of the most popular ways to organize a business is as a limited liability company, otherwise known as an LLC. The true advantage of an LLC over other business entity types comes in the form of tax benefits. LLCs,… read more…
- Guide to Taxes on Selling a House
Selling a home is a major life change. But before you can concentrate on buying a new house, you’ll need to figure out how to properly report any profits related to the sale of your house. Such profit is known… read more…