Clay’s Recent Posts

Can a Relative Be a 1031 Qualified Intermediary?

The successful execution of a 1031 exchange can allow an investor to defer payment of capital gains taxes. This tactic can help you leverage your investment capital, but to obtain approval from the IRS, you must carefully follow the rules governing the 1031 exchange transaction. If you make a mistake, the IRS may disqualify the exchange, resulting in you having to pay the capital gains taxes immediately.

Jan 27, 2023

What Causes a Deferred Tax Liability?

It's a given that individuals and companies must pay federal taxes on income earned in a given year. But sometimes those taxes are recognized, and paid, at a future point rather than the year in which a sale occurs or income is earned. This concept is known as deferred tax liability, or DTL.

Jan 23, 2023

What is Title Vesting?

For many people, buying a home or an investment property is the culmination of years of dreaming, hard work, and saving.  Purchasing real property comes with some important decisions, most notably, how to hold the title for the residence or asset. This decision, known as title vesting, affects the legal rights of the property owners, as well as directs the flow of payments if the asset is sold. 

Jan 18, 2023

Does a Credit Shelter Trust Get a Step-Up in Basis?

A common tax strategy for married couples who have amassed significant financial assets is to create a credit shelter trust (CST) in order to maximize the federal estate tax exemption. 

Jan 17, 2023

What is an Emergency Power of Attorney?

Conferring a power of attorney (POA) can be a legal event but doesn’t usually involve a lawyer. Instead, designating a power of attorney gives the named person the authority to make decisions on behalf of the person who made the designation.

Jan 14, 2023

Are Opportunity Zones Publicly Traded?

In October 2021, private equity firm and family office Belpointe Capital launched the first (and to date, only) publicly traded Qualified Opportunity Fund (QOF). Operating under the NYSE stock name of OZ, Belpointe OZ, to date, has raised more than $345 million of equity capital and has more than 2,500 units in its development pipeline.

Jan 12, 2023

What States Have Both Inheritance and Estate Tax?

Estate planning is essential to protect the value of your estate and create the lowest possible amount of taxation when assets are transferred to your heirs.  Estate planning is especially important for larger estates. The IRS estate tax exemption of $12.06 million excludes many estates from federal taxation, and that exclusion amount is doubled for married couples. However, some states impose estate taxes while others impose inheritance taxes – and one state imposes both. 

Jan 9, 2023

How Does Divorce Affect Capital Gains Tax?

Going through a divorce can be an emotionally difficult time as lives are uprooted during separation.  Divorce also can bring about some serious tax consequences, especially for couples who sell their primary marital residence and file separate tax returns. High-net-worth couples who own commercial real estate properties also face some complicated financial decisions. 

Jan 7, 2023

Can You Choose an Escrow Company as Your Qualified Intermediary?

Successfully completing a 1031 exchange requires meticulous attention to detail. Exchangors don’t have to worry about navigating every single detail of their exchanges, however – that job falls on the Qualified Intermediary. 

Jan 4, 2023

What is the Difference Between Inheritance Tax and Estate Tax?

Inheritance and estate taxes have common threads, but they are different. Taxation and how it is applied for both are quite different. Not everyone will have to worry about these two taxes. Most states do not have either one. But some states have both. These may sound like confusing taxation laws so let's unwind both.

Jan 3, 2023

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