Mckenna’s Recent Posts

What Risk Factors Should I Consider When Retiring?

What Risk Factors Should I Consider When Retiring?

Retirement comes with a host of things to consider, the least of which is whether you should take up pickleball.  For many seniors, making their money last is an overarching concern. There are a handful of risk factors that could jeopardize your retirement nest egg, including inflation, market volatility, how long you live, how much you spend, and the state of your health as you journey into your Golden Years. 

Dec 1, 2022

Do Capital Gains Count Toward Your Income Bracket?

Do Capital Gains Count Toward Your Income Bracket?

Capital gains can have tax benefits over regular income, specifically long-term capital gains. That’s because long-term capital gains have a lower tax rate than regular income and short-term capital gains, which are also taxed at the regular income tax rate.

Nov 25, 2022

How Are Capital Gains Taxed If You Move?

How Are Capital Gains Taxed If You Move?

Moving to another state can bring about some serious logistical, interpersonal, and even financial challenges. 

Nov 13, 2022

What Does It Mean to Be In a Zero Tax Bracket?

What Does It Mean to Be In a Zero Tax Bracket?

When you look at the tax brackets, they all have a rate greater than zero. You'll be taxed no matter your income, according to the tax brackets. But there is such a thing as the zero tax bracket. It just isn't listed. You have to do some calculations before you can determine if you're in it or not. Let's dive into what it means to be in a zero tax bracket.

Nov 9, 2022

Do You Pay Capital Gains on Inherited Stocks?

Do You Pay Capital Gains on Inherited Stocks?

The capital gains tax is a levy on the gain, or increase, in the value of a capital asset over its basis. Capital assets include real estate, business property and equipment, jewelry, antiques, stocks, bonds, mutual funds, mineral rights, royalties, and some intellectual property like patents. The value is the amount that you sell it for or can sell it for, while the basis is the amount you paid, plus acquisition and improvement costs.

Nov 3, 2022

Who Holds Funds in a 1031 Exchange?

Who Holds Funds in a 1031 Exchange?

A 1031 exchange can be a highly productive tactic for real estate investors, potentially enabling them to leverage the appreciation in one property to invest in others. Investors have varied motivations for selling an asset and replacing it with another one—including upgrading, diversification, geographic pursuits, and more. If the owner manages the transaction using a traditional sale and purchase arrangement, the investor will owe capital gains taxes on the appreciation of the property they sell. Paying that tax can restrict the amount they have available for reinvestment in a new property.

Oct 30, 2022

What are Examples of Retirement Portfolios?

What are Examples of Retirement Portfolios?

Intimidation may be one of the most significant obstacles to adequate retirement planning. According to the Transamerica Retirement Survey (conducted in 2020 by the Harris Poll), 42 percent of Americans admit that their biggest concern is that they will outlive their retirement savings and investments. Yet, despite that fear, 68 percent of those surveyed either strongly or somewhat agreed that they were building an adequate nest egg for retirement. The concern may be due to worries about whether the investments are safe and will grow enough to provide the needed income.

Oct 26, 2022

Is a Trade in a Like-Kind Exchange?

Is a Trade in a Like-Kind Exchange?

The term "like-kind exchange" refers to a tool that investors use to defer the payment of capital gains resulting from the disposition of an investment property. These transactions are often called 1031 exchanges, referencing the section of the Internal Revenue Code that authorizes the practice. A 1031 exchange is a proceeding by which an investor can defer the payment of capital gains due on the sale of investment property, subject to specific stipulations:

Oct 21, 2022

What Are the Pros and Cons of a Double Net Lease (NN) Property?

What Are the Pros and Cons of a Double Net Lease (NN) Property?

Commercial leases typically fall into three categories: gross leases, modified gross leases, and net leases. Within the net lease category, there are single, double, triple, and absolute subcategories. Which is most advantageous for you depends on the type of business, the circumstances, and whether you are the landlord or the tenant. Knowledge is power, and understanding the differences between the leases can help you decide which is most suitable.

Oct 17, 2022

Are Retirement Planners Worth It?

Are Retirement Planners Worth It?

Planning for a secure, comfortable retirement is a nearly universal aspiration. For most people, the idea of living in their retirement without worrying about finances is a top priority. But for many, doubt over how to achieve that goal is troubling. For example, you may have questions about your retirement assets. Do you have enough saved, and is it invested appropriately? For some investors, retirement's special tax and management challenges lead them to rely on professionals for advice.

Oct 13, 2022

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