The Realized Team’s Picks
Are K-1 Distributions Considered Taxable?
Schedule K-1 is a tax form that reports income, losses, and dividends. The K-1 can be used by partnerships, S-corporations, and trusts to report income, losses, deductions, credit, and distributions to their stakeholders and the IRS. Depending on the issuer, the information on the K-1 is used to complete Form 1065 (partnership tax return), Form 1120-S (S-corporation tax return), or Form 1041 (trust and estate tax return).
Can Selling My Investment Property Affect My Social Security Benefits?
More than 71 million Americans will receive Social Security benefits in 2024. That includes retirees, people who qualify for SSI disability benefits, and some survivors. Each one will receive an increase in their benefit amount for 2024 compared to 2023 of 3.2 percent, due to a cost-of-living increase tied to inflation.
What is the Difference Between Durable and General Power of Attorney?
Power of Attorney is a term that indicates that the grantor has given another person authority to act on their behalf. The person to whom the authority is given does not need to be an attorney and typically isn’t. In fact, you don’t even need an attorney to establish the POA, although a notary will be helpful.
How Much Does a Medical Power of Attorney (MPOA) Cost?
A Medical Power of Attorney (MPOA) is one of the most commonly used types of POAs. The MPOA is sometimes called a healthcare proxy, an advanced directive, or a Durable Power of Attorney for Healthcare Decisions. With any of these names, an MPOA is a grant of authority from one person to another, allowing the designated person the authority to make medical decisions on the grantor's behalf when they cannot do so.
What are the Exceptions to the 2 out of 5 Year Rule?
Selling a primary residence for a profit can mean paying a lot in capital gains taxes. Unlike investors, the 1031 exchange isn’t available for primary residences. However, homeowners can still limit or completely exclude capital gains taxes. One of those options is an eligibility test called the 2 out of 5-year rule. Let’s see how it works.
Does Tenancy by Entirety (TBE) Avoid Probate?
Probate is a process by which a court manages the distribution of a deceased person’s assets to beneficiaries. Many people prefer to avoid probate, as it can be a time-consuming process, causing delays in the distribution of assets. Probate is also costly and may expose private financial matters publicly.
How to Identify a Property with Your Qualified Intermediary
A qualified intermediary (QI) is one of the most important people you’ll interact with during a 1031 exchange. For that reason, you’ll want to find a reputable QI to work with you through the exchange process.
Are Opportunity Zone Funds Still Available?
Qualified Opportunity Zones came to be as part of the 2017 Tax Cuts and Jobs Act (TCJA). Some key elements of the TCJA are:
Can My Lawyer Be a Qualified Intermediary (QI) for a 1031 Exchange?
Using a 1031 exchange to defer capital gains taxes when you sell an investment property and reinvest the proceeds can effectively leverage your investment options. For example, suppose you have a real estate asset you purchased for $400,000 several years ago, and now you can sell the property for $600,000. In a standard sale, you would owe capital gains taxes on the $200,000 gain, reducing how much you could reinvest. If you execute the transaction as a 1031 exchange, you can reinvest the entire $600,000. The tax on the capital gain is deferred, not eliminated.
