Grace’s Recent Posts

Do Capital Gains Count as Income for Obamacare?

Do Capital Gains Count as Income for Obamacare?

The Patient Protection and Affordable Care Act of 2010 provided comprehensive health care reform in an effort to make affordable health insurance available to more individuals. Also known as the ACA or “Obamacare” (as the bill was signed into law by then-President Barack Obama), the legislation enabled uninsured employees and self-employed individuals to buy affordable healthcare insurance.  

Dec 1, 2022

How Do I Report the Sale of Mineral Rights on My Tax Return?

How Do I Report the Sale of Mineral Rights on My Tax Return?

While the royalties you could earn from your ownership of mineral rights are taxed as ordinary income, the IRS considers the amount gained from selling those rights to be a capital gain. As with the sale of real estate or other capital assets, you report the sale of mineral rights on Form 4797. The calculation and payment of the taxes on that gain will depend on several variables.

Nov 26, 2022

Do Renters Pay Property Tax?

Do Renters Pay Property Tax?

The term property tax includes several potential levies—taxes that homeowners pay on their primary residence, taxes that consumers pay on the value of their vehicles like cars, boats, and airplanes, and commercial taxes that investors pay on their holdings. In each case, the amount of the tax levied and the collection is determined locally, usually at the city or county level. Some states have high residential property taxes, while others do not. Depending on the locality, commercial property assessments may be higher or lower than residential taxes.

Nov 19, 2022

What are the Pros and Cons of Bridge Loans?

What are the Pros and Cons of Bridge Loans?

Bridge loans can allow buyers to purchase a new home without first selling their old house. If there is a dependency on selling the old home, the buyer must make a contingency offer. Because some sellers prefer non-contingent offers, contingent buyers can be left out.

Nov 14, 2022

How Do Companies Pay Capital Gains Taxes?

How Do Companies Pay Capital Gains Taxes?

The Tax Cuts and Jobs Act (TCJA) of 2017 made some major changes to the way corporations pay taxes. 

Nov 9, 2022

What is Macroeconomic Risk?

What is Macroeconomic Risk?

We’ve said it before, and we’ve said it often: There is no such thing as risk-free investing. Certainly, there are varying degrees of risk when investing. But all investments carry risks including (but not limited to) capital, default, currency, inflation, and interest rate risks. 

Nov 3, 2022

Does Standard Deduction Apply to Capital Gains?

Does Standard Deduction Apply to Capital Gains?

The U.S. income tax code, officially designated the Internal Revenue Code (IRC), is a large document that was enacted by the U.S. Congress through Title 26. Additional tax guidance is located in Treasury regulations, sometimes referred to as federal tax regulations.  

Oct 30, 2022

Are Capital Gains Taxed at a Higher Rate?

Are Capital Gains Taxed at a Higher Rate?

If you’ve sold any kind of capital asset, you might have received a profit on that sale. This is also known as capital gain or capital gains. And if you’ve sold any kind of capital asset for a profit, you might have to pay taxes on those capital gains. But how much? Are capital gains taxed at a higher rate, then say, ordinary income? 

Oct 26, 2022

What Documents Do I Need for Capital Gains Tax?

What Documents Do I Need for Capital Gains Tax?

As you probably already know, the IRS recently received a significant infusion of funds from the Inflation Reduction Act. The IRS is hoping to increase the audit rate from its current sub-one percent performance, focusing on higher-income tax returns. Examining higher income returns makes sense, as does investigating returns with income from sources that aren’t easily verified. For example, the IRS reports that for ordinary wages and salary income, compliance with reporting and paying income tax is nearly perfect. In contrast, for income from harder-to-verify sources like small businesses, noncompliance may be as high as 55 percent.

Oct 22, 2022

What is the Average Return on a 75/25 Portfolio?

What is the Average Return on a 75/25 Portfolio?

For investors, crafting a portfolio involves several steps, typically repeated periodically. After all, an investor’s needs and circumstances change, which likely means their approach to investing should also. One of the essential steps is deciding on your asset allocation, which is one of the key determinants of your portfolio composition. It’s up to you to determine the appropriate distribution of your available assets based on your investment goals and risk appetite.

Oct 18, 2022

Download The Capital Gains Tax Calculator

Cap Gains Calculator For Investors
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