Robert’s Recent Posts
Paying taxes on monies received can be confusing. This is because there are various ways in which you might receive funds.
Real estate investors have a multitude of choices - residential rentals, other commercial properties like office buildings and hospitality centers, retail operations, and more. Every class and sector offers potential pros and cons. Investors can also decide to purchase real estate-backed securities or fractional interests in asset portfolios by investing in REITs (Real Estate Investment Trusts) and DSTs (Delaware Statutory Trusts).
Sometimes a person can no longer make their own decisions and needs another person designated to do so. The authority can be partial, as in a medical power of attorney, or comprehensive, as is the case with guardianship.
When someone dies, their estate is a distinct legal entity for tax purposes. As a result, estates can be required to pay estate and income taxes. The threshold for federal estate taxes is quite high--$12.92 million for an individual in 2023. If one partner in a married couple dies, their exemption transfers to the surviving spouse, effectively doubling the threshold. That amount includes lifetime gift tax exemptions the individual has previously claimed (the annual gift tax exemption is $17,000 starting in 2023).
In certain instances – especially if you have amassed an extremely large estate – you’ll have to pay an estate tax when you transfer real property or other monetary assets to your heirs when you die.
When you are creating your estate plan, it is important to look beyond your primary beneficiaries and consider what happens to their inheritance if they precede you in death. If you add a per stirpes distribution to your will, the beneficiary's share of your assets will pass to their direct descendants if they die before you.
Depreciation of fixed assets provides an important tax deduction for real estate investors and business owners. Depreciation can be applied to a wide range of long-term fixed assets. It’s an important tax provision because it allows businesses or investors to deduct a portion of the cost of buying physical assets over time instead of all at once. Depreciation deductions also lower taxable income, which can help maximize tax savings.
When hurricane Ian hit southwest Florida in late September of 2022, it destroyed more than 5,000 homes in Lee County and severely damaged another 13,000 residences.1 The damage wrought by Ian left thousands of homeowners pondering their next steps. Homeowners and investors who owned condemned properties may be able to complete a 1033 exchange to replace homes that were destroyed or severely damaged by the hurricane’s wrath.
Hitting retirement is a milestone, but it can create uncertainty about your finances. One of the major questions we hear is whether retired seniors have to file taxes.
There are many reasons why landowners may want to place some or all of their land holdings in conservation easements.