The Realized Team’s Picks
What Is Form 8949 and What Is it Used For?
It’s that time of year during which things settle down after the holidays, life gets back to normal and yes—preparations for income tax season are underway. The deadline for filing Tax Day paperwork in 2022 is Monday, April 18 (or Tuesday, April 19 for those residing in Maine and Massachusetts).
What Is IRS Tax Form 1040-SR, and What Is It Used For?
IRS Form 1040-SR is a new version of the 1040 form explicitly designed for taxpayers aged 65 and older. The Bipartisan Budget Act of 2018 introduced Form 1040-SR and a simplified version of the standard Form 1040. The notable differences between the two are that the 1040-SR has larger type font and highlights tax benefits specifically available to seniors. Taxpayers aged 65 or older by the end of the tax year for which they are filing may choose which form to use, whether retired or still working. However, retirees under the age of 65 may not select the 1040-SR.
What Is the Difference Between Joint Tenants and Tenant-in-Common?
Communal property ownership can take on several different forms. Two of the most common ways to hold title to real property are joint tenancy and tenant-in-common (TIC).
What Is Form 1042 and What Is It Used For?
Paying a contractor requires filing Form 1099. But what happens if that contractor is a foreign entity? In that case, you’ll want to start considering Form 1042, which is used for U.S. sourced income payments to foreigners. As usual, it is best to work with your accountant to determine if the form fits your scenario.
How Much of Property Taxes Are Tax-Deductible?
While property taxes can feel like a financial burden, the property tax deduction allows property owners the opportunity to write off those tax payments during tax season. However, it’s important to know how property taxes work, what’s deductible, and how much you can claim when you file your tax return.
What Is Form 1041 and What Is It Used For?
IRS Form 1041 is used to report income for trusts and estates. For estates, the form is specifically designated to record income the estate earns after the estate's owner dies but before the distribution of assets to any beneficiaries. This is separate from a form 706 estate tax return.
Can You Do a 1031 Exchange on Inherited Property?
Inheriting real estate after a loved one dies can be a financial windfall – but it also can bring about some hefty tax liabilities. Assessing your new financial position with experienced financial professionals and understanding your options can help beneficiaries of inherited property avoid putting themselves in situations where they owe the Internal Revenue service a large sum for capital gains taxes.
What Is Form 4797 And What Is It Used For?
When selling a business property or one that generates cash flow, IRS Form 4797 is used. The IRS defines the specific property types as business property. We’ll list these property types and discuss filling out Form 4797.
How Can I Invest in Infrastructure Stocks and Bonds?
Investors shouldn’t overlook the opportunity to diversify their portfolios through infrastructure stocks and bonds. Infrastructure investments offer earning potential since the world is constantly developing. Recent proposed infrastructure legislation in the U.S. has further cemented the potential of infrastructure investments for the near future.
What Is a 6252 Tax Form and What Is It Used For?
When a property is sold for a gain, the investor may end up with a sizable tax bill. There are several ways to handle a large tax bill:
