Podcasts about ordinary income

Join Bo Barron, CCIM and Timmy Barron, ADHD in this captivating episode of "Commercially Speaking" as Bo welcomes fellow CCIM instructor and commercial real estate (CRE) investor Mark Cypert, CCIM, to the show. Mark shares three riveting stories from his investment journey, offering invaluable insights into the highs and lows of CRE investing. What You'll Learn: First Deal Success: Hear about Mark's first investment in Indianapolis, where he leveraged local government support by calling on the mayor to help secure a deal. Learn how this strategic move played a crucial role in the successful acquisition of the building. Office-to-Housing Conversion: Discover the complexities and challenges Mark faced in converting an office building into housing. Despite the significant difficulties and "brain damage" involved, this project turned into a highly successful venture, demonstrating the potential rewards of innovative thinking in CRE. A Deal Gone Wrong: Gain a sobering perspective on the risks inherent in CRE investing as Mark recounts a deal in California that went awry when the city stopped paying rent. Understand the importance of risk management and the reality that not every deal will go as planned. Mark's stories provide a balanced view of the CRE landscape, highlighting both the potential for great success and the reality of significant risks. Whether you're an aspiring investor or a seasoned professional, this episode offers valuable lessons and real-world insights that can help you navigate the complexities of the CRE market. Tune in to "Commercially Speaking" for an engaging and educational discussion that underscores the importance of resilience, strategic thinking, and risk management in commercial real estate investing. ⏰Time Code⏰ 00:00:00 - Intro 00:04:08 - Name That Tune 00:09:01 - The Story Behind Bo's Guitar 00:09:47 - Pop Quiz 00:21:21 - Who Is Mark Cypert? 00:24:15 - The 1st Investment 00:28:39 - Why Buy An Empty Building!? 00:36:14 - Ordinary Income vs Capital Gains Tax 00:37:33 - Converting Office Into Apartments 00:46:10 - Why Can't This Be Replicated More? 00:50:24 - The Complexities of Ground Leases 00:51:51 - When A Deal Goes Wrong 01:03:24 - Shoutouts!

Which would your rather pay, long-term capital gains tax or ordinary income tax? Neither (that is another topic) - long-term gains of course.  Join Pat for a review of a simulated K1 and see how multifamily real estate may be able to shift your tax exposure to long-term gains.If you would like a copy of the handout for today's session, just email Pat at Pat@MaraPoling.com

The Drink: Fog Cutter The Topic: Income Taxation Did you know that various forms of income are taxed differently? Did you know that individuals and trusts/ estates have different tax brackets? On this week's episode, Caleb and Jason cut through the fog of income taxation. Learn more about how taxes impact your financial plan.

Podcasters: Alison Reiff-Martin, CPA and Phillip Washington, Jr.    Powered by ReiffMartin CPA and Stone Hill Wealth Management

In this episode of our mini 3 part series we discuss how ordinary income is taxed and how ordinary losses can be utilized to offset your other income.

On this episode Mike Jesowshek, CPA talks the two main types of tax, ordinary income tax and capital gain tax.1) What Is Ordinary Income Tax?2) What Is A Capital Gain or Loss?3) What Are Capital Gain Tax Rates?4) How Are Capital Losses Treated?5) What Other Taxes Are There? LINKS FROM THE SHOWShow Blog: https://www.taxsavingspodcast.com/blog/what-is-ordinary-income-tax-vs-capital-gain-taxSign-Up for the Small Business Tax Savings Summit: https://www.taxsavingspodcast.com/summitJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax  --------Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings PodcastArticle: https://www.taxsavingspodcast.com/blog/what-is-ordinary-income-tax-vs-capital-gain-taxJoin Our Tax Minimization Program: https://www.taxsavingspodcast.com/taxIncSight Packages: https://incsight.net/pricing/Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale-------Podcast Website: https://www.TaxSavingsPodcast.comFacebook Group: https://www.facebook.com/groups/taxsavings/--------To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

In this episode Marcus Mire, CPA explains the difference between ordinary income and preferred income that is taxed at lower rates. Like most things in the tax world there are caveats but knowing the basics can be a big advantage.

Flip & Dani review week 3 videos and give you their top takeaways for each episode. Whether you missed an episode this week or just want to hear our top takeaways, you'll love these weekly recaps!Download your Free Private Lending Report here: www.freedomcapitalinvestments.com/lendingDownload your Freedom # worksheet here: www.freedomcapitalinvestments.com/worksheetClick on the Social Media links below and listen in on our Private Group Conversations about how to achieve Financial Freedom through a consistent pipeline of passive income investments:https://www.facebook.com/groups/freedomthroughpassiveincomehttps://www.linkedin.com/groups/14048250/—————————————————————————This is our third week in review with Key Takeaways from each day.Episode 15 - Real Estate Syndications - What are they and Why Do We Love Them?Key takeaway - Real Estate Syndications: Most passive income, Tax Benefits,  Limited Liability, and  Diversification Ep 15 - Real Estate Syndications - What are they and Why Do We Love Them?Episode 16 - Tax Benefits For Passive Real Estate InvestorsKey takeaway - Ordinary Income versus Capital Gains, Depreciation, Depreciation RecaptureEp 16 - Tax Benefits For Passive Real Estate InvestorsEpisode 17 - FUNDS: Syndications & Diversity on SteroidsKey takeaway - Syndications allow you to pool money together with other investors and invest in a large project that you might not have been able to do otherwiseEp 17 - Funds: Syndications & Diversity on SteroidsEpisode 18 - Stock Market vs. Real EstateKey takeaway - Head to head comparison of stocks vs. real estate on which is better in 5 categories: liquidity, diversity, growth, preservation, and cashflow Ep 18 - Stock Market vs Real EstateEpisode 19 - Flipping vs. Turnkey vs. SyndicationsKey takeaway - What are the pros and cons of Flipping, Turnkey and Syndications? Syndications are the most passive, do you agree? Ep 19 - Flipping vs Turnkey vs SyndicationsEpisode 20 - Week 3 Live Progress UpdateKey takeaway - Podcast numbers, new intern, featured on Keith Weinhold Podcast, officially naming our new guest podcast, and deals update. Ep 20 - Week 3 Live Progress UpdateJoin our groups on Facebook and LinkedIn.www.FreedomCapitalInvestments.comInvest Smart.  Live Happy.—————————————————————————Connect with us here:FB personal pageshttps://www.facebook.com/Flipsterhttps://www.facebook.com/dani.lynn.robisonLinkedin personal pageshttps://www.linkedin.com/in/fliprobison/https://www.linkedin.com/in/danilynnrobison/Instagram personal pageshttps://www.instagram.com/fliprobison/https://www.instagram.com/danilynn23/TikTok  personal pageshttps://www.tiktok.com/@danilynnrobisonhttps://www.tiktok.com/@fliprobison

Flip and Dani talk about the ways the tax code favors real estate investors.Download your Free Private Lending Report here:www.freedomcapitalinvestments.com/lendingDownload your Freedom # worksheet here:www.freedomcapitalinvestments.com/worksheetClick on the Social Media links below and listen in on our Private Group Conversations about how to achieve Financial Freedom through a consistent pipeline of passive income investments:  https://www.facebook.com/groups/freedomthroughpassiveincomehttps://www.linkedin.com/groups/14048250/————————————————————————————Let's talk about the tax benefits of real estate investing. We list out the scores of incentives to real estate investing that you need to know, all under 10 minutes. It's not always how much a deal makes, it's how much you get to keep!1) Ordinary Income versus Capital Gains. Long term capital Gains is one of the biggest benefits, 17% delta over ordinary income and short term capital gains.2) Depreciation. Writing off the value of an asset over time, straight line depreciation and bonus (or accelerated) depreciation3)  Depreciation Recapture. Recapturing depreciation is the process the IRS uses to collect taxes on the gain you've made from your income property and are capped at a maximum of 25%Our private facebook group gives you access to where you can start building a direct relationship with us, we'd love to get to know you. 30 days later you may be invited into our Deal Room.  The Deal Room is our private room where we share exclusive 506B opportunities because now you are our “Buddy.”Join our groups on Facebook and LinkedIn.https://www.facebook.com/groups/freedomthroughpassiveincome https://www.linkedin.com/groups/14048250/www.FreedomCapitalInvestments.comInvest Smart.  Live Happy.————————————————————————————Connect with us here:FB personal pageshttps://www.facebook.com/Flipsterhttps://www.facebook.com/dani.lynn.robisonLinkedin personal pageshttps://www.linkedin.com/in/fliprobison/https://www.linkedin.com/in/danilynnrobison/Instagram personal pageshttps://www.instagram.com/fliprobison/https://www.instagram.com/danilynn23/TikTok  personal pageshttps://www.tiktok.com/@danilynnrobisonhttps://www.tiktok.com/@fliprobison

Scott and James discuss how you can take advantage of tax loss and tax gain harvesting. Planning Points Discussed Retirement Planning Utilizing Time Efficiently Capital Appreciation Purchasing Power Other issues (IRAs, Inflation, Financial Goals, etc.) Timestamps: 1:30 - Scott's eldest son scores a goal & James surfs! 2:42 - When Should I Start Saving / Investing? 4:10 - Tax Loss Harvesting 6:13 - Taking Advantage of Losses 6:26 - What is a Wash Sale? 8:41 - Capital Gains v. Ordinary Income 10:16 - Does Your Financial Advisor Ask For Your Tax Return? 13:00 - Tax Gain Harvesting 15:55 - Tax Gain Harvesting & Roth Conversions 17:23 - Aligning Your Financial Goals   LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don't miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play. Leave us a review on iTunes. Have a money question you want us to answer? Submit one here

Mark and Derek will continue their discussion on how President Biden plans to tax "the rich" and the not-so-rich.  All these taxes keep dipping into the middle class.    As the president proposes a six trillion-dollar budget he plans to pay for much of this by raising taxes.  Who will be affected?  How will these tax increases affect you?  What you need to pay attention to as these tax increases are passed?OUTLINE OF THIS EPISODE[1:00} Recap the first two plans[1:20] Number Three: Raise taxes on the step-up inherited property[7:00] Number Four: Tax Carried Interest Taxed as Ordinary Income[9:55] Number Five: Like-Kind Exchanges[12:35] Number Six: Extend the business loss Limitation Rule[14:24] Number Seven: Increasing Enforcement ActivitiesConnect with Derek GabrielsenTwitter: @DerekGabrielsenFollow Derek on LinkedInSend Derek a message hereCheck out Derek's YouTube channel!Connect With Mark TepperTwitter: @MarkTepperSWPFollow Mark on LinkedInSend Mark a message hereThe SWP Connect YouTube ChannelSend your questions and comments to us at info@SWPConnect.com Subscribe to The Capitalist InvestorThe opinions expressed in the podcast are for general informational purposesonly and are not intended to provide specific advice or recommendations for any investment, legal, financial, or tax strategy. It is only intended to provideeducation about the financial industry. Please consult a qualified professionalabout your individual needs.

"Can you explain how long-term capital gains are 'stacked on top' of ordinary income?" Here are all the YMYW capital gains tax vs. ordinary income tax discussions, together in a single episode, to help you craft a tax-efficient strategy for managing dividends, Roth conversions, and paying less capital gains tax. Will your taxes be going up? Subscribe to the YMYW podcast and newsletter for the latest updates. Access the transcript and financial resources, ask your money questions: https://bit.ly/YMYW-325

In this episode we go through the basics about the taxation of ordinary brokerage accounts at an elementary level and answer questions from Brian and Jamie about taxation of intermediate savings and tax location approaching retirement.  Links:Tax Schedules for Ordinary Income:  2021 Tax Brackets and Other Tax Changes (investopedia.com)Long-Term Capital Gains Information and Tax Schedules:  Capital Gains Tax 101  (investopedia.com)Bogleheads on Investing Episode 032:  Phil DeMuth, host Rick Ferri (podbean.com)Using the Zero Percent LTCG's Rate In Retirement:  Never Pay Taxes Again - Go Curry Cracker!

Our topic on this episode of the Ready for Retirement podcast is about understanding if capital gains can cause you to move into a higher tax bracket.Questions to ask ourselves: Are there different tax brackets for Ordinary Income v. Capital Gains? When does it make most sense to realize Capital Gains? How should I be approaching tax planning as I near retirement? How should I be approaching tax planning if I'm already retired? How can I minimize my tax bill with proper tax planning, both for today and the future?Are you ready to start focusing on the things that truly matter when it comes to your financial future?Reference Sheet: 2021 Important Numbers Tax SheetAre you ready to start focusing on the things that truly matter when it comes to your financial future?LET'S CONNECT!FacebookLinkedInWebsiteENJOY THE SHOW?Don't miss an episode, subscribe via Apple Podcasts, Stitcher, Spotify, or Google PlayHave a question you want answered on a future episode? Submit it here

In this podcast episode, we have a listener question: I just recently found your podcast when I was looking for some info on mega-backdoor roths. Thanks for all the info, you guys really are a wealth of knowledge. In an older episode, where you guys were talking about asset locations, one of you mentioned that if you have dividend-paying stocks, you should hold them in a retirement account, so you don't get messed up with paying taxes on the dividends. I have been of the understanding that investment dividends are taxed at long-term capital gains rates, so for MFJ, you would need to make over $80,000 in dividend income before you pay any taxes in 2020. If this is the case, and your dividend stock or fund paid 2% per year, you would have to hold $4,000,000 to reach that first 15% threshold. In this case, taxable accounts seem like a great place to hold dividend-paying stocks. Am I misunderstanding something about this? Planning Points Discussed: Taxable Investments Taxation of Qualified Dividends and Ordinary Income Asset Location v. Asset Allocation Long-Term Capital Gains v. Short-Term Capital Gains  Hierarchy of Assets Key Points: How Various Taxes Impact Your Income Tax Implications Example: Example: You make $100,000 a year and you contribute $10,000 to your 401(k) and take a standard deduction of $12,000. Your taxable income would be $90,000 and if $12,000 is the standard deduction, $78,000 would be taxable income.  There are two separate tax brackets for Ordinary Income & Long-Term Capital Gains(includes Qualified Dividends). If your ordinary income is under $80,000, any capital gains are taxed at 0%. Between $80,000 and $496,000,  you are taxed at a rate of 15%, and above $496,000 you are taxed at 20% (assuming MFJ).  The listener is correct- if you have a $4,000,000 portfolio, received $0 in ordinary income, and dividends were below $80,000, you would be taxed at 0%.  If you make over $250,000 as a family, there is an additional 3.8% tax(Net Investment Income Tax). Salary, Social Security, etc. are all taxed at Ordinary Income rates. Long-Term Capital Gains & Qualified vs. Ordinary Dividends  Qualified vs. Ordinary Dividends When you receive a dividend, a company is making money and deciding to return some of that money back to the stockholders. If you hold a dividend for 60 days, it would be a qualified dividend. If not, it would be an ordinary dividend taxed at ordinary income tax rates. Long-Term Capital Gains If you hold a stock for less than a year and choose to sell, you have to pay your ordinary income tax rate. If you hold a stock more than a year and choose to sell, you receive preferential tax treatment. Types of Investment Accounts IRA/401(k)- tax-deferred while it is growing and taxed upon withdrawals. Non-qualified accounts such as a brokerage account. Roth IRA accounts which are taxed on the way in (after-tax) grow tax deferred and are withdrawn tax-free. Asset Location Invest investments that are tax-inefficient into tax-efficient accounts (i.e. REITs/high-dividend paying stocks in a retirement account). Invest investments that are tax-efficient into tax-inefficient accounts (i.e. technology stocks in a brokerage account). What’s the right mix of investments for you and where should those investments be invested based on your individual situation? Asset location helps you maximize your returns after taxes.  Hierarchy of Assets REITs (most tax-inefficient) TIPS Nominal Bonds Domestic Equities Emerging Markets International Stocks (most tax-efficient)   Timestamps: 1:36 - Taxable Investments 3:26 - Ordinary Income Tax Brackets 6:12 - Net Investment Income Tax 8:30 - Qualified Tax Treatment 11:02 - Asset Location 12:15 - Asset Allocation 15:00 - Taxation of Dividends 15:33- Hierarchy of Assets   LET'S CONNECT! James Facebook LinkedIn Website Scott Facebook Twitter Website ENJOY THE SHOW? Don’t miss an episode, subscribe via iTunes, Stitcher, Spotify, or Google Play. Leave us a review on iTunes. Have a money question you want us to answer? Submit one here

In this episode, Aaron and Trishul discuss all the different types of taxes in the United States and their impact on income inequality. They discuss regressive consumption taxes, progressive income taxes, and how taxes are lower for businesses and the wealthy. They also examine the difference between marginal tax rates and effective tax rates. Do you know all the ways that corporations and their owners avoid paying taxes? Maybe our society has collectively decided that this is acceptable? Or perhaps its the maximum marginal brackets on corporations and individuals that affect public perception, when it is, in fact, our tax system that hinders income earners while helping the wealthy.Episode ReferencesMMS #14. These key innovations will change everything.MMS #27. Can a UBI really pay for itself?Federal Income Tax CalculatorPiketty's Inequality Story in Six ChartsSin Taxes Punish the PoorSin Tax Examples2019 Tax BracketsCapital Gains Tax RatesA 95 Year History of the Maximum Capital Gains Tax RateHow to Borrow for FreeZuckerberg's 1% MortgageAccounting TricksApple Wins EU Court Battle Over Unpaid Irish Tax BillWhat Is a Tax Haven?What is a Wealth Tax?Podcast Description Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

#21: The US tax system vastly favors leisure over labor. It favors people who just own things and sit around and collect rents over people who actually do work for a living.How is this so?Because rents and returns on capital assets are taxed WAY more favorably than wages from labor. So favorably, in fact, that you can actually make 6 figures income and pay zero taxes.Every year.For the rest of your life.This would never be possible with labor wages.So in this week’s podcast episode, I’ll show you how our tax system is structured in a way that allows you to make over 6-figures in income with zero tax liability.What you’ll learn in this episode:Why and how our tax system creates this opportunityWhat are the scenarios in your life where you can take advantage of thisExactly how it works step by stepAnd the best way to optimize this loopholeLinks mentioned in this episode:IRAs, Roth IRAs, and how to get the tax benefits of BOTH (HYW004)How to take a year off, earn 6 figures, harvest capital gains, do Roth conversions…and pay zero taxes on it all (updated for 2020)TurboTax TaxCasterHYW private Facebook communityIntro/Outro: Old Bossa by Twin Musicom.

The Tax Benefits of Real Estate are numerous.  Ted Lanzaro, author of the Tax Smart Landlord, is a real estate investor and CPA whose practice is focused on helping real estate investors. Ted began working as a CPA for a firm where his clients were real estate investors.  After he recognized the benefits of real estate investing, he started investing himself. Like most investors, he started investing in single family properties, purchased, rehabbed and rented these properties.  As his experience grew, so too did his portfolio. Together with friends, they purchased and grew a portfolio of smaller multifamily properties in SE Florida.    Since then, he has relocated to Connecticut where he currently invest passively in other syndicators projects.. Benefits of a Real Estate Focused CPA  The benefits of a real estate focused CPA are not always recognized by investors.  It’s usually only after hearing Ted speak at an investor meeting that audience members will seek him out to discuss how they can improve their tax situation.  Ted’s experience as an investor helps him connect with investors as an investor rather than just a tax theory CPA.    The difference between a generalist and a specialist is proportionate to your tax consequence.  There are a lot of great CPA’s that know a little about a lot of different business types, but this is of limited use to someone whose business is primarily real estate.  A real estate specialist makes it his job to stay up to date on the laws and opportunities to take advantage of the laws to better their clients tax situation.    The Benefits of Real Estate The benefits of real estate are numerous.  With a real estate focused CPA, you are more likely to take advantage of the legal opportunities to lower your tax bill.  Benefits include:  The ability to depreciate the asset, and expense the depreciation against income; lower income equals lower tax owed. Leverage the asset and expense the interest payments. Receive loan proceeds without tax consequence. 1031 Exchange into a larger property rather than pay capital gains from a sale. Biggest Mistake Investors Make with Taxes The biggest mistake investors make with taxes is hands down, failing to take advantage of the tax filing rules as they apply to deprecation.  This failure combined not doing cost segregation studies nor writing off abandoned capital assets when they are replaced, add up to significant missed opportunities.  He attributes this to the fact that the client’s prior CPA was not a real estate investor, and therefore did not fully understand the benefit of depreciation. There are additional deductions available to you as a real estate investor that are often missed.  One additional expense often missed is the miles driven to your properties while you manage them. Even if you cannot take advantage of the losses in the current year, it helps you to accumulate these losses for the future when you have a significant gain from a sale.  These accumulated losses can then be used against your gain to lower your tax expense.   What Class of Investor are You? Depending on class of investor you are, will dictate the opportunities available for you when filing your taxes.  The taxpayer classifications available to you are:  Passive: For the investor who invests as a limited partner in a syndication.  You are not allowed to take any passive losses against your Ordinary Income.  Active - For the investor who actively manages his property, they can expense up to 25,000 if their Adjusted Gross Income is less than $100,000.  The ability to write off losses lessens as your income approaches $125,000.   Real Estate Professional: If you work in Real Estate and spend more than 750 hours in Real Estate per year, you can expense 100% of your real estate expenses against your Adjusted Gross Income. Any depreciation that you are not able to use in the current tax year, is carried forward to be used later.  If not used prior to sale, you can use to offset the gain from the sale of the property.  Cash Flow The goal of investing in real estate is cash flow.  The benefit of real estate is is amplified with the benefit of depreciation, in that the paper loss of depreciation against income can reduce your taxable income to zero.  Keep in mind that if you keep the property long enough, you will eventually run out of depreciation, unless you exchange or recapitalize the building with new investment. The reason most investors are not concerned with this is because the present value of cash is worth more than cash received at a future date.   Selling a Property Selling your property can cause a significant taxable event.  Prior to selling, you want to engage your CPA to determine what your tax consequences will be, and if you can do anything to minimize the tax consequences.   If you elect to do a 1031 Exchange, you have guidelines you have to abide by to avoid the tax consequences.  These include time lines and the use of an exchange intermediary.   BIGGEST RISK  Each week I ask my guest, “What is the Biggest Risk Real Estate Investors face?”   BIGGEST RISK: The Biggest Risk Real Estate Investors currently face are the local laws being passed in favor of tenants.  These include environmental consequences, caps on rent increase, landlord fees charged by local jurisdictions, etc.      For more go to: http://lanzarocpa.com/ Phone: (203)922-1742 Email: ted@lanzarocpa.com

https://www.carterfarr.com/2019/05/re... So lets first start with some background on the almighty Roth IRA: First, like I just mentioned, all of the profit generated in this account is tax free after the age of 59.5. That could save you a LOT of money by the time you retire, especially if you begin investing in this early on. Second, with a Roth IRA, you can withdraw whatever money you contribute to this account, at any time, tax free, without paying any penalties. However, here are the downsides: First, with a Roth IRA, you contribute POST TAX MONEY - this means the money that’s left over after you’ve already your paid taxes on it. And as we all know, the money you have left over AFTER taxes is a LOT smaller than before the taxes were taken away…this means you’ll have LESS of your money to invest upfront, all things considered. Second, if you want to withdraw your PROFIT from this account before the age of 59.5, you’ll be subject to a 10% penalty, and you’ll have to pay normal taxes on that profit. Third, the contribution limit for a Roth IRA is capped at $6000…so if you want to contribute more than this, well, you can’t. But how does this all compare to the Traditional 401k? Well, the 401k is an employer sponsored retirement account where you contribute PRE TAX money…meaning you won’t pay any taxes on the money you invest in this account. Now because you don’t have to pay taxes on the money you contribute, you have even MORE money left over to invest instead of paying it to the IRS, allowing that extra money you saved in taxes to make YOU even more money. Pros of a Traditional 401k: You contribute pre-tax money, meaning you don’t pay taxes on the money you put in this account, and can be a huge tax deduction. Secondly, you can contribute up to $19,000 per year in a 401k…that’s more than 3x HIGHER than you can contribute to a Roth IRA. Third, some employers offer a 401k employer match - which means they actually match your contribution, dollar for dollar Downsides to the traditional 401k: The first is that you’ll end up paying taxes on your money when you begin withdrawing it from your account after the age of 59.5. With a 401k, you’re basically saving money on taxes NOW so you have more to invest upfront. Secondly, if you want to withdraw the money prior to the age of 59.5 for anything other than financial hardship, you’ll be subject to paying a 10% penalty on your money and you’ll owe taxes as though this money is ORDINARY INCOME. Third, you’ll be forced to begin withdrawing your money at the age of 70 1/2…and for some people who prefer to continue saving it and letting it grow, well…you can’t. And the right mix is - in my opinion - a slight balance between the two. I still contribute a bit to my traditional 401k just to hedge my future options, even if I have no idea if it’ll be the smart choice in the future…again, JUST IN CASE. I also go heavy on the Roth option, too, because I know it’ll be tax free in the future, and I don’t have to question what future tax rates may or may not be. --- This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app Support this podcast: https://anchor.fm/carterfarrpodcast/support

Interest and dividend income are other areas of the tax code that punishes the ignorant. You have income on lines 8a, 8b, 9a and 9b? Why? Is there a strategic reason for earning this income in order to pay tax? If so, that's fine. Maybe you need the cash to help pay the bills, pay tuition, take a vacation, etc. However if you're receiving this income because of how your investments are designed without any strategic intent, I suggest you consider a different plan of action Let's start by looking at what types of income you have. If you have interest income, from bonds and/or CDs, this income is taxed at ordinary income rates. Worse yet, there is NOTHING you can do about it other than paying the tax on it...as ordinary income. Consider moving ANY holding you have that yields ordinary income(OI), into your Traditional IRA in order to defer those OI taxes as long as you possibly can. Remember your IRA is taxed as Ordinary Income anyway. So, having an IRA taxed at those rates PLUS having investment income taxed at the same means your paying too much in tax. If you have municipal bond income, i.e., 'tax exempt interest' consider scrapping those and instead moving into corporate and/or government bonds inside your IRA. Because municipals are tax free they offer a much lower interest rate than corporate and government bonds. So, for simplicity, say a municipal bonds yields 2.5% a corporate bond will pay more because it's income is taxed. A corporate bond with similar maturity date may pay 4%. This means it takes $320,000 in assets to yield $8,000 in income for the municipal bond but only $227,272 for the corporate bond AFTER taxes for someone in the 12% bracket! That is a significant difference in the allocation amount to corporate bonds over tax free bonds to receive the same after tax income. We don't municipal bonds, unless we're in the higher tax brackets, those above 22%. We don't want ANY bonds in our taxable account either. We want bonds in our Traditional IRA. Secondly, we want dividend paying stocks, the investments that give us income on lines 9a and 9b, in our ROTH IRA. DIvidends we don't need only cause higher taxes. Avoid that. Move your income-oriented stocks to your Roth. Lastly, we want your most aggressive holdings, ideally the ones with little to no dividends or capital gains in your taxable accounts. The unrealized appreciation on these investments cause you NO tax. Because these holdings are aggressive they should pay no dividends whatsoever. Lastly when it does come time to sell a position in order to generate cash, you can work the tax code to do it in the most tax-favored way possible. You can't do with other income you receive from your investments. Finally, at death, the growth of these aggressive accounts transfer TAX FREE to your heirs because of the step up basis rules. IRA accounts don't have that benefit. Roth IRA accounts don't have a step up in basis but they are tax free anyway, which is just as good. At the end of the day, it's up to YOU to understand the tax code to take advantage of it to your benefit. If your advisor isn't helping you with this, well, hate to sound brutal but seek a new advisor! --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

Revocable Living Trusts do NOT shield one from estate tax, be it an heir or the grantor of the trust. Your heirs actually don't pay estate tax, anyway. YOUR estate pays the tax. A Revocable Living Trust (RLT) is included in YOUR estate. Thus if your estate is large enough, your RLT will be subject to estate tax, indeed. It's an irrevocable trust that is not included in your estate. And will not be subject to tax to your heirs. Income received in the trust will be subject to tax, either to the estate or the heirs. But that's a topic for another discussion. Estate tax is not an issue for the VAST majority of tax payers when it comes the Federal Estate tax. However if you live in a place like MA, your exemption is only $1mm! And that includes everything you own, your home, investments, even life insurance. The tax your heirs are going to pay is if they inherit an IRA, 401k, 403B. They will pay Ordinary Income tax on the distributions they take from those accounts. --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

Interest and dividend income are other areas of the tax code that punishes the ignorant. You have income on lines 8a, 8b, 9a and 9b? Why? Is there a strategic reason for earning this income in order to pay tax? If so, that's fine. Maybe you need the cash to help pay the bills, pay tuition, take a vacation, etc. However if you're receiving this income because of how your investments are designed without any strategic intent, I suggest you consider a different plan of action Let's start by looking at what types of income you have. If you have interest income, from bonds and/or CDs, this income is taxed at ordinary income rates. Worse yet, there is NOTHING you can do about it other than paying the tax on it...as ordinary income. Consider moving ANY holding you have that yields ordinary income(OI), into your Traditional IRA in order to defer those OI taxes as long as you possibly can. Remember your IRA is taxed as Ordinary Income anyway. So, having an IRA taxed at those rates PLUS having investment income taxed at the same means your paying too much in tax. If you have municipal bond income, i.e., 'tax exempt interest' consider scrapping those and instead moving into corporate and/or government bonds inside your IRA. Because municipals are tax free they offer a much lower interest rate than corporate and government bonds. So, for simplicity, say a municipal bonds yields 2.5% a corporate bond will pay more because it's income is taxed. A corporate bond with similar maturity date may pay 4%. This means it takes $320,000 in assets to yield $8,000 in income for the municipal bond but only $227,272 for the corporate bond AFTER taxes for someone in the 12% bracket! That is a significant difference in the allocation amount to corporate bonds over tax free bonds to receive the same after tax income. We don't municipal bonds, unless we're in the higher tax brackets, those above 22%. We don't want ANY bonds in our taxable account either. We want bonds in our Traditional IRA. Secondly, we want dividend paying stocks, the investments that give us income on lines 9a and 9b, in our ROTH IRA. DIvidends we don't need only cause higher taxes. Avoid that. Move your income-oriented stocks to your Roth. Lastly, we want your most aggressive holdings, ideally the ones with little to no dividends or capital gains in your taxable accounts. The unrealized appreciation on these investments cause you NO tax. Because these holdings are aggressive they should pay no dividends whatsoever. Lastly when it does come time to sell a position in order to generate cash, you can work the tax code to do it in the most tax-favored way possible. You can't do with other income you receive from your investments. Finally, at death, the growth of these aggressive accounts transfer TAX FREE to your heirs because of the step up basis rules. IRA accounts don't have that benefit. Roth IRA accounts don't have a step up in basis but they are tax free anyway, which is just as good. At the end of the day, it's up to YOU to understand the tax code to take advantage of it to your benefit. If your advisor isn't helping you with this, well, hate to sound brutal but seek a new advisor! ================================= If you like what you see, a thumbs up helps A LOT. So, give me a thumbs up, please! --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

https://player.vimeo.com/video/308818936https://www.currentfederaltaxdevelopments.com/podcasts/2018/12/30/2018-12-31-lump-of-coal-for-real-estate-agents Loan Adviser Found Not Liable to Repay in FINRA Treated as Ordinary Income from Debt Forgiveness IRS Raises Values Dramatically on Vehicles Eligible for Cents-Per-Mile and Fleet-Average Valuation Rules Safe Harbor Issued on Charitable Contribution Credits Related to a Trade or Business Revenue Procedure Issued to Deal with ADS Issues for Electing Farm and Real Property Businesses IRS Publication Indicates Real Estate Agents/Brokers and Insurance Agents/Brokers are in a Specified Service Trade or Business

This week we look at: Loan Adviser Found Not Liable to Repay in FINRA Treated as Ordinary Income from Debt Forgiveness IRS Raises Values Dramatically on Vehicles Eligible for Cents-Per-Mile and Fleet-Average Valuation Rules Safe Harbor Issued on Charitable Contribution Credits Related to a Trade or Business Revenue Procedure Issued to Deal with ADS Issues for Electing Farm and Real Property Businesses IRS Publication Indicates Real Estate Agents/Brokers and Insurance Agents/Brokers are in a Specified Service Trade or Business Proposed Regulations on Treating Sale of Partnership Interest as Effectively Connected to US Trade or Business IRS Announces Plan to Issue Regulations on Two Special Enforcement Matters Under CPAR, as Well as CPAR Final Regulations Annual Disclosure Revenue Procedure Updated by IRS Copyright 2018, Kaplan, Inc.

Identify the exceptions to the general rule that distributions from qualified plans, 403(b) annuities, and IRAs are included as ordinary income

Identify the exceptions to the general rule that distributions from qualified plans, 403(b) annuities, and IRAs are included as ordinary income