The Realized Team’s Picks
What Is Form 8996 and What Is It Used For?
Beginning in the 2019 tax year, a new form was introduced by the IRS that was designed to evaluate and track the performance of Qualified Opportunity Funds (QOFs), which were created in 2017 as part of the Tax Cuts and Jobs Act.
What Is an Irrevocable Living Trust and How Does It Work?
Oliver Wendell Holmes, legal scholar and Associate Justice of the United States Supreme Court, advised that men should “Put not your trust in money, but put your money in trust.”1 That may still be good advice for individuals seeking effective management of funds both presently and in the future.
Are REITs a Safe Investment for Retirement?
Investing for retirement is a vital topic for many people since they may be seeking to accumulate wealth or grow income in advance of their future retirement plans. However, since greater rewards typically involve accepting higher risks, investors must calculate their risk appetite and tolerance, which change over time.
Does a Spouse Pay Inheritance Tax?
Leaving your spouse in a secure financial position after you pass is an important aspect of estate planning for many Americans.
What Is a 1099 INT Form and What Is It Used For?
If you were paid more than $10 in interest from a bank, brokerage, or other financial institution during the 2021 tax year, you likely saw one or more Form 1099-INTs arrive in your mailbox sometime in February.
What Is Power of Attorney and How Does It Work?
Power of attorney (POA) sounds like a legal concept, but it doesn’t have to involve lawyers at all. The American Bar Association states that a power of attorney gives one or more persons the authority to act on your behalf as your agent. This power can be temporary or permanent, and it can be limited to a specific activity (such as buying and selling assets) or covering any activities. You can confer this authority to your lawyer, but you can also direct it to your spouse or best friend. You can also make such a determination effective immediately or subject to some potential future occurrence (such as your future inability to act on your own behalf).
What Are the 7 Tax Brackets?
The IRS tax brackets divide income by taxable levels. Different tax rates are applied at each level. The more you make, the higher the tax rate. The tax system is also progressive. This means if you make $80,000 in a year, the entire amount is not taxed at 22%. It is divided into three tax brackets made up of 10%, 12%, and 22%.
What Is Transfer on Death and How Does it Work?
Planning for the orderly disposition of one's assets at the time of death is typically done through a will and possibly establishing a trust or trusts. A will is sometimes called a last testament and is a document that states how a person's assets are to be distributed after their demise. A will can also be used for other instructions and functions, such as naming a guardian for minor children. It's important to note that a will does not take effect until the death of the person who created it (they can change it as long as they are living and mentally competent to do so).
What Is Sponsor Risk in Real Estate?
Sponsors are the representatives of real estate deals for investors and developers. To maintain a good reputation and continued deal flow, sponsors need to provide high-quality service, which means a smooth deal transaction from beginning to end.
Who Pays for Estate Taxes and How Much Do They Pay?
Taxes owed on a family member's estate after the death can be very high. This tax is called an estate tax, inheritance tax, and death tax. Up to a certain amount (i.e., the estate's value), taxes are not owed. After that amount is surpassed, taxes are owed by those inheriting the estate. We'll go over the estate tax details in this article, who pays it, and how much they'll pay.
