A 1031 exchange lets you defer gains on the sale of rental property. The sale of a primary residence qualifies for exclusion of 250k or 500k if married also known as 121 Exclusion. 121 Exclusion is reduced if you move into a rental property and turn it into a primary residence. However, the reduction is …
Understanding the intricacies of 1031 exchanges is crucial for advising clients on tax deferral strategies in real estate investments. A 1031 exchange, named after Section 1031 of the U.S. Internal Revenue Code, allows investors to defer capital gains taxes by reinvesting the proceeds from a sold property into a new, like-kind property. Here’s a detailed …
Navigating the world of taxes can be challenging, especially for self-employed individuals. One significant benefit available to you is the ability to deduct health insurance premiums. This deduction can help reduce your taxable income, making health insurance more affordable. Here’s a comprehensive guide to understanding and utilizing this deduction. Eligibility Criteria To qualify for the …
Deducting Health Insurance Premiums as a Self-Employed Individual Read More »
Incentive Stock Options (ISOs) are a popular form of equity compensation, particularly in tech startups and high-growth companies. As an accountant, understanding the intricacies of ISOs is crucial for providing comprehensive financial advice to clients. This article delves into the key aspects of ISOs, their tax implications, and how accountants can help clients maximize their …
In the realm of accounting, expertise in insurance is a valuable asset. Accountants who understand the intricacies of insurance can provide comprehensive advice to their clients, ensuring they maximize their benefits while minimizing their tax liabilities. One area where this expertise is particularly beneficial is in managing fringe benefits. This article explores the importance of …
Mastering Insurance as an Accountant: The Role of Fringe Benefits Read More »
Taxes are a fundamental part of modern society, providing the necessary funds for governments to operate and deliver public services. They come in various forms, each serving a specific purpose and impacting individuals and businesses differently. This article aims to provide a clear understanding of the different types of taxes and their significance. Types of …
RMD stands for required minimum distribution, which is the amount of money that you must withdraw from certain tax-deferred retirement accounts each year once you reach a certain age. RMDs apply to original account holders and their beneficiaries in these types of plans: traditional IRAs SEP IRAs SIMPLE IRAs 401 (k) plans 403 (b) plans 457 …
WHAT IS THE RMD (REQUIRED MINIMUM DISTRIBUTION) FOR 2023 Read More »
If you paid interest on a qualified student loan in 2023, you may be able to deduct up to $2,500 from your taxable income. This deduction can reduce your tax bill and help you save money on your student debt. However, there are some rules and limitations that you need to know before claiming this …
How to Deduct Student Loan Interest on Your 2023 Tax Return Read More »
If you bought a new, qualified plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D. The credit is available as long as you meet certain income and usage requirements. Here is what …
How to Claim the Electric Vehicle Credit on Your 2023 Tax Return Read More »
California lets you deduct more mortgage interest on your State return than Federal if you bought your home in 2018 or later The mortgage interest deduction is a tax benefit that allows homeowners to deduct the interest they pay on their home loans from their taxable income. This deduction can reduce the amount of income …
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