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What Is the Difference Between a Schedule D and Form 4797?

What Is the Difference Between a Schedule D and Form 4797?

Taxpayers who sold capital assets (i.e., property) will use Schedule D and maybe Form 4797 when filing their tax returns. Which form you use depends on the asset being used for personal or business use. In this article, we’ll go over these two tax documents and look at their differences.

Mar 21, 2022

What Is the Inheritance Tax Rate?

What Is the Inheritance Tax Rate?

As George Harrison of the Beatles famously wrote in his hit song "The Taxman," citizens seem to be taxed on everything, including death itself. Harrison's advice to be sure and "declare the pennies on your eyes" was obviously satire directed at the notoriously high levies in the United Kingdom. In the United States, we are not exempt from high taxes, although there is confusion about the difference between inheritance taxes and estate taxes.

Mar 21, 2022

What Is the Standard Deduction on Form 1040-SR?

What Is the Standard Deduction on Form 1040-SR?

Vision loss among the elderly is a serious problem – according to the American Academy of Family Physicians, one in three seniors over the age of 65 has some type of vision impairment. Macular degeneration, cataracts, glaucoma, and diabetic retinopathy are the most common causes of age-related vision loss.¹

Mar 20, 2022

Can an LLC Invest in a Tenants-in-Common?

Can an LLC Invest in a Tenants-in-Common?

Forming a limited liability company can come with several pros and cons for real estate investors.

Mar 19, 2022

What Is the Difference Between a 1099-MISC and 1099-NEC?

What Is the Difference Between a 1099-MISC and 1099-NEC?

Tax time brings with it several different forms that must be filled out and filed to the IRS, typically by April 15. This year, the income tax deadline has been pushed to April 18, 2022 for most.

Mar 19, 2022

What Are Investment Risk Factors?

What Are Investment Risk Factors?

Understanding various risk factors can help any investor in the management of risks. Risk management is a deep subject, requiring lots of knowledge about assets and their associated risks.

Mar 18, 2022

Real Estate as An Alternative Investment: What You Need to Know

Real Estate as An Alternative Investment: What You Need to Know

In its original form, Modern Portfolio Theory (MPT) was a mix between stocks and bonds, usually a 60/40 split. As the theory evolved, other types of investments were added, and one of the first was real estate.

How To Report Stock Options, Wash Sales, and Cash in Lieu on Form 8949

How To Report Stock Options, Wash Sales, and Cash in Lieu on Form 8949

If you read our blogs on a regular basis, you’ll know that we’ve authored several articles about Form 8949. The IRS’s website states that the form’s official purpose is to “reconcile amounts that were reported to you and the IRS on Form 1099-B or 1099-S.” With that in mind, we’ve written about Form 8949 in reference to capital gains tax reporting, as well as inherited property tax and opportunity zone deferrals.

Mar 16, 2022

Investment Property vs. Primary Residence Interest Rates: What Is the Difference?

Investment Property vs. Primary Residence Interest Rates: What Is the Difference?

Rising and falling interest rates create a ripple effect across many sectors of the national economy. Homeowners and real estate investors know well how low interest rates can affect borrowing costs. Low interest rates spur home buying and loan activity on investment properties since lower interest rates make it cheaper to borrow money. It also can change the profitability of an investment property or reduce your monthly mortgage payment on your primary residence.

Do You Pay Inheritance Tax on Life Insurance?

Do You Pay Inheritance Tax on Life Insurance?

In this day and age, it seems as though just about everything is taxable. Income is taxable (both in the form of wages and dividends). So are capital gains when selling capital assets. Then there are estate taxes and state inheritance taxes.

Mar 15, 2022

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