Basic Finance for Real Estate Investors
One should not confuse direct real estate investments with pure investments in real estate such as purchasing an interest in a publicly traded Real Estate Investment Trust (REIT) or a Master Limited Partnership (MLP). A pure investment produces income through the skills and efforts of a third party. This is not the case with direct [...]
Comments on the Proposed Marketplace Fairness Act
It is no surprise that the proposed Marketplace Fairness Act, a piece of legislation that would permit States to assess sales tax from out-of-state online vendors, has been rapidly advancing through the Senate. Some studies have estimated that its passage could increase state tax revenues by as much as $11 billion annually. At the same [...]
7 Ways to Avoid Taxes on Social Security Benefits
With more than ten thousand people turning sixty-five every day it is not surprising that there is a lot discussion about strategies to maximize social security benefit payments. Equally important, however, is consideration of what your after-tax post-retirement income will look like. It doesn’t do much good to increase your social security benefits by $3,000 a year [...]
Why your losses are not always deductible
One of the most frequent questions asked by our clients is why their losses cannot be used to offset their income. “I made money, invested it, lost it and now you are telling me I have to pay tax only on what I made. What about what I lost? Where exactly am I supposed to [...]
Avoiding an IRS Imposed Accuracy Related Penalty
The United States relies on a voluntary system of compliance in which each citizen reports their income freely and voluntarily, calculates their tax liability correctly and files a tax return on time. The system is voluntary in that people are free to arrange their financial affairs in a manner that allows them to best take [...]