I have a question regarding the sale of a property, specifically a vacant lot currently rented/leased by a nursery. The offer is for $750,000.00. I want to use the proceeds for paying off my children's education loans and expenses, acquiring a larger primary residence to accommodate an ailing mother-in-law, and saving for retirement. How can I reduce my tax liability on the sale proceeds and what are the typical tax implications for capital gains on rental property?

April 20th, 2023

I'm helping my wife with her rental property taxes. We entered income of about $5000, checked De minimis safe harbor election, Capitalize repair and maintenance costs, and Small taxpayer safe harbor election. We also entered Peruvian taxes of $300, repairs of $1000, and travel of $900. Is there anything else we should consider or is that it?

February 1st, 2023

This year, I sold my shares in my family ranch (S-Corp) back to the corporation for $152,000. How will this affect my taxes? This amount is approximately 65% of what the price might be on the market.

May 30th, 2023

I want to pay off credit cards with my 401(k). I have approximately $62K in the fund with an outstanding $15K loan against it. I am 63 and retired, receiving RSDI and a state pension. My wife is also retired and receives a pension. Our yearly income is approximately $59K. What is my tax liability if I cash out my 401(k) to pay off the credit cards and the loan?

March 5th, 2024

If you are age 67, on Social Security, pay $1200 for Medicare Part B, and are self-employed with a small business, will the Medicare payment count as an adjustment to your income on your 1040, but not be deductible as a business expense on your Schedule C?

June 29th, 2024