Personal Finance information
Can Property Resulting from a 1031 Exchange Be Put to Personal Use?
It is possible to eventually convert property involved in a 1031 exchange to personal use and not have to immediately pay capital gain tax.
Can a joint living trust be structured to allow a 100 percent basis step-up?
In a community property state, jointly owned real property is stepped up 100 percent to fair market value (FMV) on the date of death of the first spouse.
In a life estate, is it OK to sell the property?
First, she would need your wife’s permission to do so and maybe your own, depending upon the laws in your jurisdiction.
Should I cash my IRA to pay my creditors?
Many Americans have faced the dilemma you describe. There are always multiple demands for the cash we have.
Can I apply a capital loss against my father's trust?
Regarding the bonds, technically there is no loss if you sell them for $20,000.
Should my father have a living trust?
A living trust is easy to administer, and at your father’s death, you will not have to pay estate tax.
What are the requirements for a Section 1031 exchange?
Internal Revenue codes and regulations do not state a specific time that property must be held for a Section 1031 exchange.
How can my child determine the tax basis of my house in a life estate?
The basis of the property in the hands of your child will be the FMV at the date of ...
Can I continue to work and draw Social Security?
If you retire now, your earnings limit is $11,520 for 2003 before your benefits are reduced.
Whose name should we put on house's deed?
By knowing the rules ahead of time, you could have essentially avoided all taxes.
Can we recoup capital losses when filing taxes?
A simple answer would be to roll the $44,000 via a trust-to-trust transfer to an IRA.
How long can I carry forward capital losses?
You can carry unused capital losses forward for as long as you live.
How will a divorce affect capital gain taxes on selling of properties?
The tax laws treat capital gains from sales of residences and investment real properties differently.
Must we declare a gift from my parents?
Good news! The receipt of a gift, regardless of the amount, does not have to be declared on your personal income tax return.
How can I deduct all of my rental property's expenses?
There are several specifics that need to be explored that depend upon your overall circumstances.
How Should I Report A Reimbursement Of A Wage Overpayment?
The easiest way to handle this situation is to have your employer issue a corrected W-2 for the year 2001.
Do I Have to Report Interest from Foreign Bank Accounts?
United States citizens and foreign residents in the United States must report all income, including interest on bank accounts, regardless of where the income came from.
Do I Have To Declare My Blackjack Winnings?
Although you are more likely to lose in Vegas than win, Uncle Sam says taxes are owed on what you won.
Can I Avoid Inheritance Taxes on an IRA?
If the will or trust states that the estate pays the taxes before any remaining funds are distributed, it doesn’t matter where the tax money comes from.
Should I Make an Early 401(k) Withdrawal to Purchase a House?
First, check with your plan administrator about the particulars of your 401(k) plan.
How Should the Value of Accrued Vacation Days be Calculated?
There is no formal accounting guideline for computing the dollar value of unused vacation time.
Would It Be Better to Refinance or Get an Equity Line of Credit?
Usually it doesn't make sense to refinance your first mortgage unless you can reduce the interest rate by one percent or more.
Can I Withdraw My 401(k) Funds from My New Firm and Transfer Them to an IRA?
Before Jan. 1, 2002, if employees remained with a company after a takeover, they were not deemed as having been separated from service if they worked at the same job or "desk." Under those circumstances, the new company could move the employees' 401(k) funds into its plan.
When Would It Be Best for Me to Take an IRA Distribution?
You may take the first required minimum distribution any time during the year you turn 70-1/2, but you may delay it without penalty until Apr. 1 of the following year.
Should I Sell or Donate My Used Items?
Unless you have a lot of used items, it probably won't affect your standard deduction.
Do We Owe Capital Gain Tax If We Purchase Another House?
No, you don't owe capital gain tax provided the sale meets certain qualifications.
Who Is A Qualified Intermediary That Can Arrange A 1031 Like-kind Exchange?
To avoid the IRS treating you as actually having received money or non-like-kind property in the transaction, you need a qualified intermediary.
Will the State Assess a Special Tax If I Retire at 59 1/2 and Begin to Draw On My Annuity?
If you have reached age 59 1/2 when you start withdrawing from the annuity, you will only be subject to ordinary income tax rates on the earnings.
Can I Deduct Fees Paid to My Mutual Fund Manager?
The fees paid to people who manage your investments are investment expenses.
Is a Life Estate Considered Joint Property?
Life estates deed property to another entity while allowing the owners to have use of the property until they die.
When Stocks Are Gifted, Is the Tax Basis Stepped Up?
If the stock has gone down in value from the time the donor acquired it, then the basis is the price on the day of the gift.
How Can I Avoid Estate Taxes for My Heirs?
For the rich, the price of dying has always included a substantial tribute to Uncle Sam. But in recent years, the middle-class has started feeling the burden.
My Wife Isn't On the Title to our House, Does That Make Her a First-Time Home Buyer?
The law goes out of it's way to include a spouse as an owner for the first time home buyer exception.
Should I Consolidate My IRAs?
Consolodating your accounts can make them easier to manage.
What Is A Trust And How Can It Help Me In My Financial Planning?
Learn from the IRS how a trust can help--or hurt--you.
What Should I Do With My Money During Stock Market Fluctuations?
The investing public and the media have become "index conscious," yet few people really understand what these indexes mean.
How Can I Use My Money In A 1031 Exchange?
A "1031 exchange" is a very powerful tax strategy for re-deploying real estate while avoiding significant tax consequences.
For Estate Planning, Is Real Estate Considered community Property Or Joint Tenancy?
How you and your spouse hold title to property can make a world of difference.
How Are Nonresidents Who Work in the United States On A Temporary Basis Taxed?
United States residents are subject to some very specific and complicated rules.
What Is A Charitable Lead Trust?
A charitable lead trust can be a powerful tool to minimize death taxes.
How Can I Save For My Child's College Education?
Whether or not a student receives some form of financial aid, however, families are expected to contribute to their students' education.
Plus! Get help funding your child's college education!
Kids In College?
The Federal PLUS loan program can help!
