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:
What Is Form 1098: Mortgage Interest Statement?
Tax time typically brings a horde of paperwork in the mail. In addition to the common W2 and many iterations of Form 1099, there are other tax documents you might receive as well.
At What Income Level Do You Not Have to Pay Capital Gains Taxes?
Real estate investors know that capital gains taxes can take a pretty hefty bite out of the profits generated from the sale of their investment assets – that’s why many of them kick the tax can down the road by completing 1031 exchanges and deferring this tax liability.
Where Do I Report Mortgage Interest On a 1040 Form?
Home mortgage interest can be a valuable tax deduction for taxpayers who file returns with itemized deductions.
President Biden and 1031 Exchanges: What You Need to Know
President Joe Biden sent shockwaves through the real estate investment community in the summer of 2020 when he proposed key changes and restrictions for 1031 exchanges to fund an economic recovery plan titled, “The Biden Plan for Mobilizing American Talent and Heart to Create a 21st Century Caregiving and Education Workforce.”
What Is Inheritance Tax and How Much Is It?
Back in the early 18th century, Christopher Bullock published his one-act play, “The Cobbler of Preston.” Based somewhat loosely on another, famed playwright’s “Taming of the Shrew,” Bullock introduced a somewhat innocuous phrase for its time: “’Tis impossible to be sure of any thing but Death and Taxes.”
