taxes: Qualified Charitable Contribution
- 04/10/19 05:27 PM
If you're at an age where you need to be taking Required Minimum Distributions (age 70.5) from your IRA, a qualified charitable contribution and some planning may allow you to lower your overall tax liability. Let's say that a couple's 2019 itemized deductions include $8,000 in property taxes, $4,400 in interest and $20,000 in charitable contributions. That would total $32,400 which exceeds the 2019 $25,300 standard deduction for married couples, 65 years of age or older, filing jointly. Their required minimum distribution from their IRA is $40,000 which will be taxed at ordinary income. If this couple is in the 24% tax … (0 comments)
taxes: Standard or Itemized Deductions
- 01/21/19 06:55 PM
The Tax Cuts and Jobs Act of 2017 increased the standard deduction to $24,000 for married couples. There will be some instances that homeowners may be better off taking the standard deduction than itemizing their deductions. In the past, homeowners would most likely be better off itemizing but the $10,000 limit of state and local taxes (SALT) adds one more issue to consider. Let's look at a hypothetical homeowner to see how a strategy that has been around for years could benefit them now even though they haven't used it in the past. The strategy is called bunching; by timing the payments in … (5 comments)
taxes: Year End Tax Newsletter
- 01/08/19 08:10 PM
One of the first steps in a good outcome is knowing a little bit about what you're about to undertake. By being aware of some of the areas regarding homes that may not come up every year in a tax return, you'll be able to point them out to your tax professional or seek more information from IRS.gov. Look through this list of items for things that could affect your tax return. Even if you have relied on the same tax professional for years to look out for your best interests, they need to be aware that there could be something different in this … (0 comments)
taxes: Your Real Estate Resource
- 01/08/19 08:01 PM
12/26/2018 Being a better homeowner is a full-time job. It's not just about making better decisions when you buy and sell; it's making better decisions throughout the time you own the home. It takes good information to make good decisions. Think of times when you need advice on financing, taxes, insurance, maintenance, finding reasonable and reliable contractors and lots of other things. Imagine how nice it would be to have a real estate information line you could call whenever you have a question. During the purchase or sale, the obvious place to get real estate answers is your agent but where do you go … (2 comments)
taxes: A Word Homeowners Need to Understand
- 07/12/18 02:38 PM
Acquisition Debt is the amount of money borrowed used to buy, build or improve a principal residence or second home. Under the new tax law, mortgages taken after 12/14/17 are limited to a combination of $750,000 on the first and second homes. The mortgage interest on this debt is tax deductible when itemizing deductions. It is a dynamic number that is reduced with each payment as the unpaid balance goes down. The only way to increase acquisition debt is to borrow money to make capital improvements. Prior to the new law, homeowners could additionally borrow up to $100,000 of home equity debt for … (0 comments)
Taxpayers can decide each year whether to take the standard deduction or their itemized deductions when filing their personal income tax returns. Roughly, 75% of households with more than $75,000 income and most homeowners itemize their deductions. Beginning in 2018, the standard deduction, available to all taxpayers, regardless of whether they own a home, is $24,000 for married filing jointly and $12,000 for single taxpayers. Let's look at an example of a couple purchasing a $300,000 home with 3.5% down at 5% interest. The first year's interest would be $14,630 and property taxes are estimated at 1.5% of sales price would … (0 comments)
taxes: Surprise When Renting Your Home
- 01/04/18 11:43 AM
Planning to go to the Masters next April 2-9th and don’t have a place to stay. Each year, there are homeowners who rent their home for a big premium during the Masters because hotels are in short supply and demand for private homes is up. Homeowners go on vacation and make tax-free income while temporary tenants rent their home. Homeowners can benefit from a little known provision in the tax code that does not require taxpayers to recognize the income derived from renting their home for less than 15 days per year. See Plan Ahead for Tax Time When Renting Out Residential or … (0 comments)
taxes: Tax Benefits of Home Ownership
- 03/15/17 02:59 PM
U.S. taxpayers have enjoyed specific tax benefits for home ownership since personal income tax was introduced by the 16th amendment in 1913. While these benefits may not be the primary reason that motivates a person to buy a home, they are still tangible and not available to tenants. The exclusion of capital gains tax on the profit made from a home is unique from other investments and provides homeowners significant savings. Single taxpayers can exclude up to $250,000 gain and married taxpayers up to $500,000 gain. During the five-year period ending on the date of sale, a taxpayer must have: owned the … (1 comments)
taxes: Worth the Effort
- 03/17/16 11:01 AM
“Anyone may arrange his affairs so that his taxes shall be as low as possible...” While Judge Learned Hand was talking about federal income taxes, it can be applied to property taxes as well. States have a process of assessing the value of a property based on a number of things that can include size, amenities, location and what the owner paid for the property. Most states make adjustments to that value annually. Once it has been published to the owner, there is a process available for those who disagree with the value. Learn the assessment process and what the filing deadlines are … (0 comments)
taxes: 1031 Exchange Delay the Tax Due
- 05/02/14 10:25 AM
An Exchange Means More to Reinvest Section 1031 exchange for rental and investment real estate is a tool that allows investors to move the gain from one property to another without immediate income tax consequences. An instant benefit is to postpone the tax due which gives the investor a larger amount of proceeds to invest. In the example shown, the investor has 21% more proceeds to invest and grow over time than if he had paid the taxes due instead of exchanging. A legitimate long-term goal might be to make qualified exchanges from one property to another until the investor dies. … (0 comments)
taxes: Looking for the Largest Deduction
- 04/12/14 07:40 AM
Looking for the Largest Deduction IRS allows taxpayers the option to take the standard deduction or the itemized deduction. The astute taxpayer will compare to see which one will result in the greatest deduction and the election can be made each year. The 2013 standard deduction for a married couple filing jointly is $12,200 and $6,100 for a single taxpayer. It doesn’t require any proof of actual expense and has no requirement for home ownership. Items that can be included on Schedule A for itemized deductions include: Certain taxes paid for state and local income tax, general sales tax, real … (0 comments)
taxes: Personal Finance Review
- 01/27/14 12:47 PM
Personal Finance Review You’ll need to earn $2.00 for every $1.00 you want to spend assuming you pay 50% of your earnings on income tax, social security and Medicare. On the other hand, you get to keep 100% of every dollar you save on your personal expenses because the taxes have already been paid. Periodically, review your expenditures with the diligence of an exuberant IRS agent on commission. It’s an exercise that most people don’t feel they have time to do but the rewards make it entirely worthwhile. Get comparative quotes on insurance – car, home, other Review and compare … (0 comments)
taxes: Dividing Assets?
- 11/07/13 06:41 AM
Dividing Assets? 11/4/2013 The division of assets between the spouses is an important decision to finalize a divorce. The exercise looks relatively simple: assign a value for each of the assets and divide them based on a mutual agreement between the parties. The challenge is to make a fair division which requires an analysis to determine their value after they’re converted to cash. Assume the two major assets in the example, a retirement account and the equity in the home, are equal at $100,000. It might seem logical to give the home to one spouse and the retirement account to the other. … (0 comments)
If you're at an age where you need to be taking Required Minimum Distributions (age 70.5) from your IRA, a qualified charitable contribution and some planning may allow you to lower your overall tax liability.
;)
;)
;)
