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
The basic idea of a Qualified Domestic Trust or QDOT (normally built into most revocable living trusts) is to avoid the forced payment of estate taxes on the death of the first spouse with a large estate, where the intended recipient is a surviving spouse who is a non-U.S. citizen. Keep in mind that the following persons still enjoy an exemption from estate taxes on the first $5.54M in assets … [Read more...] about Qualified Domestic Trusts (QDOT)
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?
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