Real Estate as an Asset Class - Insights from the Realized Team
Realized was recently featured on the Retirement Repair Shop podcast with Mary Beth Franklin. During the episode, we shared our insights on using real estate as an asset class while planning for retirement. Many retirees don’t consider real estate when planning for the future, but it can be a way to diversify your portfolio.
What Are Pre-Tax Deductions?
Pre-tax deductions are one of two types of benefits deductions: pre-tax deductions and post-tax deductions. They can be difficult to navigate; however, they play a major role in how employers handle employee paycheck tax obligations. Here’s what you need to know to make the most out of pre-tax deductions.
Can An Attorney Act as a Qualified Intermediary for a 1031 Exchange?
Almost anyone can become a qualified intermediary. That’s because in most states, there aren’t any specific license requirements, tests, or other hurdles to becoming a qualified intermediary. While almost anyone can become a QI, certain conditions will disqualify a person, which we’ll discuss in this article.
What Is a 1099-R Tax Form and What Is it Used For?
The purpose behind most pensions plans, annuities, retirement plans, or profit-sharing plans is income flow, also known as “distributions.” If you are the beneficiary of such an investment/income strategy, the chances are excellent that you’ll receive what’s known as a Form 1099-R from the custodian, sponsor, or manager of the pension or plan from which you receive distributions. This is because the IRS considers those distributions to be income, which must be reported.
What Is an Estate Planning Attorney, and What Do They Do?
According to the American Bar Association, estate planning is a process covering the transfer of property at the time of death and other personal matters that may or may not include tax planning. The essential core of estate planning is often a will. A will is a legal document that explains and enforces how a person’s assets are to be allocated after their death and is thus a crucial piece of estate planning. The ABA notes that estate planning involves the advice and counsel of more than an attorney; it may also include your accountant, tax advisor, financial planner, banker, and broker.
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.
