Are Trust Funds Taxed?
A trust fund is set up like a traditional trust, but how it operates can be a little different. However, some trust funds look and operate like a living trust (or irrevocable trust). What does that mean when it comes to trust funds and taxes? Are they taxed like a living trust or an irrevocable trust?
Do Capital Losses Reduce Taxable Income?
If you take a loss on a stock, can that loss be used to reduce your taxable income? Reducing taxable income results in a lower tax bill, something most any investor would be interested in. However, there are certain rules around capital losses, and the income from those losses can be applied to. This article will dig into the gritty details of using capital losses to reduce taxable income.
What is a Multi-Asset Exchange?
Completing a 1031 exchange often means navigating a twisting, turning road that’s often fraught with speed bumps.
How Are Proceeds Held By The Qualified Intermediary?
One main rule involved with the 1031 exchange process is that you, as the exchangor, are not allowed to handle any funds involved with the exchange. That job goes to the Qualified Intermediary (QI). Also known as an accommodator, the QI is an independent entity that is involved with every step of the like-kind exchange process.
Do You Have to Report Capital Losses?
Capital losses can help offset other income. This might be income from capital gains or even ordinary income. However, there are certain restrictions to these income offsets. The net capital gain or loss must be calculated as a first step. If the net is a loss, does that require reporting? Is it not like you will be taxed on a loss, right? The answer is more complex than it may first seem.
Can You Use a 1031 Exchange to Build an Investment Property?
1031 exchanges are tools that can enable real estate investors to defer the payment of capital gains taxes when they sell an investment property and reinvest the proceeds. However, if you complete a sale and purchase outside the auspices of a 1031 exchange, you will owe capital gains taxes on the difference between the adjusted basis and the sale price.
Is Social Security Taxed as Ordinary Income?
Social Security is the short name for the federal program officially called the Old-Age and Survivors Insurance and Disability Insurance program. This retirement program started in 1935 with the passage of enabling legislation and began paying benefits to retirees in 1940. Employees and employers contribute to the fund, each paying 6.2 percent of wages on amounts up to a maximum of $160,200 in 2023, with increases in the maximum adjusted periodically. In addition, self-employed individuals pay both the employee and employer tax, for a combined 12.4 percent.
What is a Capital Loss and How Does it Work?
We frequently talk about capital gains, including the definition of short- and long-term gains, tax implications, and management strategies. We don’t discuss capital losses as often because no one wants to talk about losing money or value, right? Still, capital losses are part of reality when you invest, and understanding how they work can be helpful in seeking to manage your overall portfolio.
Does a Spouse Automatically Have Medical Power of Attorney?
In most circumstances, a spouse is not automatically designated as the medical or healthcare power of attorney (POA) for their incapacitated partner. The lack of a formal designation can lead to conflict and confusion during a medical emergency. Every state (and the District of Columbia) has established procedures for naming a healthcare proxy, which may also be called a durable power of attorney for healthcare. In most cases, a proxy recorded in one state will be recognized in another state, although there are exceptions.
When Do Opportunity Zones Expire?
When it comes to opportunity zone (OZ) investments, some investment deadlines have already passed, but there is still a basis step-up deadline that hasn’t passed, providing investors with some time to take advantage of this tax benefit.
