Page 11 101 - 110 of 264
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?
Is Rental Income Taxed as Ordinary Income?
The short answer to whether rental income is taxed at the level of ordinary income (as opposed to the lower capital gains level) is yes, but...
Can You Have Deferred Tax Assets and Liabilities?
Let's say you sold an asset for a profit. Or you've earned revenue in exchange for goods or services. In both cases (and other similar cases in which you've earned money), you're supposed to pay taxes on those gains.
Can Rental Depreciation Offset Ordinary Income?
Real estate investors benefit from the tax shelter that real estate depreciation provides. Best of all, depreciation is a non-cash flow expense since it doesn’t impact an investor’s bank account. Some investors will have a large depreciation expense during a year, which can create an overall loss for their rental property. When that happens, can the loss be used to offset ordinary income?
Can You Offset Capital Gains with Losses from Prior Years?
A realized loss during a year can mean a lower tax bill. This loss is generally offset against other gains or income. Some people refer to this as shielding taxable income. However, there are rules on how losses are applied against income. What about losses from previous years? Do the same rules apply? Let’s find out.
What is Ordinary Income?
Paying taxes on monies received can be confusing. This is because there are various ways in which you might receive funds.
Are Stock Dividends Taxed as Ordinary Income?
For many taxpayers, there is a substantial difference in the tax rate they pay for long-term capital gains versus the rate they pay for ordinary income. The tax rates on ordinary income range from 10 percent to 37 percent. In comparison, the rate applied to long-term capital gains income is between 0 and 20 percent. The income taxed at the “ordinary” rate includes salary and wage income, commission, bonuses, rents, royalties, short-term capital gains, interest, and unqualified dividends.
Can Distributable Net Income (DNI) Exceed Taxable Income?
Distributable net income (DNI) is a tax deduction allowed by trusts. DNI must be calculated to determine its value. Part of the DNI calculation includes taxable income. If taxable income is part of the DNI calculation, does that mean taxable income is always equal to or less than DNI?
What Causes a Deferred Tax Liability?
It's a given that individuals and companies must pay federal taxes on income earned in a given year. But sometimes those taxes are recognized, and paid, at a future point rather than the year in which a sale occurs or income is earned. This concept is known as deferred tax liability, or DTL.
Do Trusts Avoid Estate Taxes?
Establishing a trust can help you achieve many different estate planning objectives, especially preserving wealth from estate taxes. With the federal estate tax exemption exceeding $12 million for 2022, only a small percentage of Americans need to worry about having to pay estate taxes at the federal level. However, 12 states, along with the District of Columbia, impose estate taxes at the state level.
Page 11 101 - 110 of 264
