Can Passive Rental Losses Offset Other Passive Income?
The three generally acknowledged income categories are active, passive, and portfolio income. While active income (also called ordinary or earned income) results from active participation in an endeavor, such as wages from a job, passive income is derived from activities requiring minimal taxpayer effort. Passive sources of income may come from rental properties (but not always), partnerships in a business, and royalties. Portfolio income includes dividends, interest, and capital gains.
Alternative Trading Systems: An Overview for Investors
Alternative Trading Systems (ATS) offer a different avenue for trading securities than traditional exchanges, serving as regulated platforms that connect potential buyers and sellers. While they function similarly to national securities exchanges in matching orders, they are not classified as such. Unlike national securities exchanges, they provide a less formal, more flexible market structure. Although under the regulation of the SEC, an ATS maintains its unique identity by operating under its own set of rules, creating a niche marketplace for certain types of securities. It is noteworthy, however, that an ATS can apply to the SEC to upgrade its status to a national securities exchange if it wishes to adhere to more formal structures.
Can You Do a 1031 Exchange on an Aircraft?
A 1031 exchange is a remarkably helpful tool for investors to manage their capital gains taxes. When you want to sell an investment property and reinvest the proceeds, using a 1031 exchange enables you to reinvest the entire proceeds while deferring payment of capital gains taxes. This simple tactic provides excellent leverage for investors.
How to Get a Medical Power of Attorney
A medical power of attorney (MPOA) is one of several types of power of attorney (POA) designation. Each POA is unique, but in each case, assigning a POA to someone gives them the authority to act on your behalf. Some POA designations are comprehensive and durable, while others are strictly limited. Many people use this tool for financial purposes, but the medical POA allows the designated individual to make medical decisions on your behalf. The authority might be immediate or take effect in the future, typically when the conferring person can’t act on their own.
Can You Turn a 1031 Exchange Property into a Short-Term Vacation Rental?
Have dreams of starting a short-term rental business? You aren’t alone.
Can One Joint Tenant Sell Property?
Joint Tenancy is among the standard methods for two or more individuals to share property ownership. Married couples and investment groups often employ a joint tenancy arrangement. In this structure, each owner holds an equal share, and all are equally responsible for obligations. A further attribute of joint tenancy is the right of survivorship, which means that if one tenant dies, their share passes equally to the other tenants rather than to a designated heir. While each joint tenant owner has an equal share, each has an undivided interest, meaning that they have full use of the shared property.
How Long Does a Limited Power of Attorney Last?
When you grant someone a power of attorney, you trust that person with the authority to act on your behalf and to represent you and your wishes. There are numerous versions of power of attorney (POA) grants, and the topic can be a bit confusing. Let’s outline the variations and consider which options may suit your needs.
Who Pays Property Taxes on a Life Estate?
A life estate is a method of owning property with another person and then efficiently distributing the property to the designated person(s) after your death. This tactic is most often used to secure ownership of a residence that is the owner’s primary home. The homeowner creates a life estate, which reserves for that person the right to occupy the home for life. The intended heir is defined as the remainderman. The remainderman has an ownership interest in the home beginning with the designation, but they do not own it until you die.
Does a General Power of Attorney Need to Be Registered?
The term “power of attorney” sounds like you need a lawyer to be involved. However, typically, a POA is granted and used without the need for lawyers. Giving a power of attorney to someone means that you are conferring on that person the authority to act on your behalf.
