The IRS recently updated some rules about trusts that could make your heirs accidentally liable for capital gains taxes. It's another quiet change that could severely impact families trying to maximize their legacies.
Feel overwhelmed by tax documents? Staying organized may help reduce your tax season stress.
How often do you set new financial goals? How often do you achieve them? Most of us aren’t very successful with our goals, even when we have the best intentions and strong willpower.1 Sometimes, that’s because we’re setting unattainable goals. Other times, we’re missing the big picture and setting our goals with blinders on.
Many of us have experienced the cost of financial literacy gaps at one point or another. And if you’re like most folks, the gaps in your financial literacy probably cost you at least $500 last year alone. 1 Think of it as a type of financial illiteracy tax. However, there is good news: you do NOT have to keep paying it year after year. The more you brush up on your financial knowledge, the better...
Goal-setting. It's the bread and butter of success across so many domains. But are you only scratching the surface? Dive deeper. A financial professional doesn't just help connect the dots; they can help you reveal additional possibilities you hadn’t even considered! Let's explore why.
You can’t control everything when you travel. But you can control what you know, how you get ready to get away, and what you do while you’re vacationing. And if you know these common travel mistakes, you’ll be much better prepared to get away and make it a truly great experience.
In a shocking turn of events, the Supreme Court has halted the presidential student loan forgiveness plan.1 So, where does that leave you and your outstanding student loans? Let's navigate this new financial landscape together.
Noticing signs of decline in our loved ones is always hard, and making care decisions for them often feels even harder. While it's impossible to make the process entirely painless, the following guidance should be useful on your journey.
Are you currently negotiating a new job offer or searching for a new role? This article aims to guide you on your journey. The question is: how do you ensure you receive a salary that mirrors your worth?
Would you enjoy your retirement more in the U.S. or abroad?
Owning rental real estate can be a powerful tool for building wealth. Real estate has a strong track record of appreciating over time. Every mortgage payment made by a tenant builds additional equity in the property. Owning high quality, cash flow positive properties opens up opportunities for additional bank financing, and the tax code has many favorable provisions for real estate investors like the 1031 exchange, active participation exception, qualified business deduction, and maximizing depreciation expense via cost segregation. It is also a complicated financial endeavor. You are borrowing money to buy an asset via an expensive and time consuming transaction.
Whether your activity in rental real estate is active or passive matters for what taxes you pay and what income can be offset with losses. Passive income is not subject to payroll taxes (Medicare and Social Security) and, therefore, does not count towards your social security retirement benefit. All else equal, not paying into social security makes your future retirement benefit smaller. If you have losses in a passive activity, it can only offset other passive income (subject also to “at risk rules”) and any excess losses are carried forward to future years.
