Archive for the ‘Tip Of The Day’ Category

Using a Tax Free Exchange with Multiple Partners

One of the things that gets investors stuck in like kind exchanges is investing with partners.  You can not do a like-kind exchange in or out of a partnership for partnership interests. For example, if you have a building that you sell, you can’t then exchange it for a 50% of a partnership that has ...

Like Kind Rolling to a Charitable Remainder Trust

We’re covering tax strategies for like-kind exchanges this week. Another strategy that older people are using on the Section 1031 is to roll it all into a charitable remainder trust. This is a trust that is setup so that a charity receives either income or the capital (corpus) when you die. The advantage is that ...

Pulling Cash Out of Like Kind Exchange

When you do a 1031, you roll into another property, and refinance on the back end of it. Then you may need to pull your cash out to buy another property and this is how you start making up for the deficit on the appreciation. Thank you for choosing UsTaxAid Services, we would be glad ...

Like Kind Exchange or Take the Gain?

Capital gains tax rates remain at an near all-time low. If you are selling a property with a big gain, you have a decisión to make. Do you pay the tax now and keep whatever cash is left over?  Or should you roll the property into another one and delay the tax to a future ...

New Limited Partner Loss Limits

The IRS has come out with proposed regulations regard limited partners who have losses through the limited partnerships. The losses are considered passive unless: (1) The individual participates in the activity for more than 500 hours during the year (2) The individual’s participation in the activity for the taxable year constitutes substantially all of the ...

Before You Select Your Pension Plan

Before you put money in a pension plan, take a few minutes to determine which is the right pension plan for you. Some thing to consider: Does the pension plan need to be tax-deferred or tax-free? (The only tax-free pension plans are Roth accounts. You could have a Roth IRA or a Solo Roth 401(k) ...

Income Splitting

If you have earned income from your business, look for ways to move that income to someone else. You may be able to employ your kids, your dependents, or any family member that you help support. For example, if you plan to put your nieces or nephews through college, is there is a way they ...

The Right Business Structure

Make sure you are using your business structures the right way. The worst one to have is the sole proprietorship. You will have more risk and ten times the audit potential. You might want to move out of the sole proprietorship just to avoid being audited by the IRS. Thank you for choosing UsTaxAid Services, ...

Different Losses With Different Tax Treatments

Business income losses are deductible as long as you have basis and active participation in the business. Investment losses could be considered investment losses, only valid against investment income, or capital losses. Capital losses are first offset against capital gains, and $3,000 of the remaining loss is then allowed against other income. If you have ...

Earned Income Can Be Good

In the last tax tip, I talked about why you might want portfolio or passive income instead of earned income. That’s because the tax rate is often lower. There is one reason why earned income might be a good thing. This is when it comes to calculating a pension. Your pension is calculated based on ...