Are Self-Directed IRAs for Real Estate a Good Idea? Maybe Not (Part 2) A quick review of Part 1 Part 1 explained several drawbacks of placing real estate in a self-directed IRA. In this article I’ll explain three more problem areas you need to consider before putting real estate in a self-directed IRA. Sure, it sounds good to buy real estate for a self-directed … [Read more...]
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The IRS Wants to Know about Your Crypto
To get my complete articlewith all the details... You see, Uncle Sam wants to know what you’re up to and if you owe any taxes on your crypto activities. The IRS starts to satisfy its curiosity right at the top of your Form 1040. That’s where they ask: “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any … [Read more...]
How Rental Property Owners Can Avoid the Net Investment Income Tax (NITT)
Do you earn profits from rental property? Then keep on reading to save money! It’s sad but true. If your income is high enough, you’re paying the 3.8% net investment income tax (NITT). Think of the tax as a surtax on your high income. But here’s some good news. If you own profitable real-estate rentals,there are three exemptions you may be able to useto avoid the 3.8% … [Read more...]
Selling Your Appreciated Vacation Home? What About Taxes?
Got a vacation home you want to sell? Be careful.The tax laws that apply can be tricky...and costly! What exactly is a “vacation home.”? Seems obvious, doesn’t it? Well, we’re dealing with the IRS so it isn’t. If you have a home that you rent outand use personally, the IRS defines it as a “vacation home.” So what? . . . you may ask. The answer is that the … [Read more...]
What’s the best choice for Vacation-Home Rental? Schedule C or E?
To get my complete, FREE articlewith all the details… Do you rent out a vacation home? If you do, when it comes tax planning you have to make a choice. Should you plan to use Schedule C or Schedule Eto claim your income and expenses? “It all depends.“ Schedule C is the smart choice if you show a tax-loss on your rental property. Schedule C lets you deduct … [Read more...]