Have you ever thought about becoming a landlord? This option may be tempting if your local real estate market is surging and rental rates are strong, especially if you're already planning to relocate or downsize to a smaller home. Ideally, you'll be able to shelter most or all of the rental income with tax deductions and eventually sell the property for a higher price than you originally … [Read more...] about Consider Taxes before Converting Your Home to a Rental Property
Feeling the urge to purge? April 18, 2017, was the deadline for individuals and C corporations to file their federal income tax returns for 2016 (or to file for an extension). Before you clear your filing cabinets of old financial records, however, it's important to make sure you won't be caught empty-handed if an IRS auditor contacts you. Still Not a Paperless Society E-filing is on … [Read more...] about Spring Cleaning: When Can You Purge Your Old Financial Records?
There is always a temptation to just sell off assets that you've accumulated and take the cash. But that generally results in a tax bill. There may be a way to profit more from those assets by giving them away. By setting up a charitable remainder trust (CRT), you might be able to transform a tax liability into a tax break, receive a steady source of income for the rest of your life, and … [Read more...] about Is This Your Situation: Worried about Taxes on an Asset Sale?
When someone dies, one of the first questions that close relatives usually have is whether they are personally responsible to pay the credit card bills of the decedent. They may even start getting telephone calls from creditors asking them to pay outstanding balances. Close relatives may also want to know: Who is responsible for paying the mortgage of the decedent? If they are entitled to … [Read more...] about Can a Creditor Go After Non-Probate Assets?
People are living longer than ever before and extended lifespans often come with increased wealth. Decisions regarding your parents' assets can be difficult for everyone, and it's not uncommon for families to be pulled apart in the process. Supervising investments. Setting up an effective estate plan. Planning for the possibility of long-term care. Making charitable contributions. … [Read more...] about Handling Your Parents Wealth
Several significant tax developments happened last year that may affect federal income tax returns that individual and business taxpayers file in 2017. Here's a quick look at 10 key changes that you should be aware of during this tax season. Uncertain Fate of Tax Extenders In 2016, Congress adjourned without addressing numerous temporary tax provisions that were set to expire at the end of … [Read more...] about 10 Important Tax-Related Developments for 2016
Are you an "experienced" taxpayer? Here are a couple of age-based tax breaks that seniors shouldn't overlook when filing their 2016 returns. 1. Claim Your Rightful Medical Expense Deductions If you're 65 years of age or older, you may have fallen into the habit of automatically claiming the standard deduction instead of itemizing your deductions. Taking the standard deduction is often the … [Read more...] about Tax Breaks Seniors Should Not Overlook