The Tax Questions Blog

Archive for August, 2008

Question: Are high school students tax exempt even when attending full time college?

Answer: If your in the UK yes

Officials worry UM could challenge amusement tax

College Park officials are worried that a June state Courts of Special Appeals ruling could eventually allow the University of Maryland, College Park, to take a major bite out of the city's tax revenue.

one percent tax.mpg

Question: Can I transfer proceeds from an Investment property to another without being taxed?

I currrently own 2 properties and I'm interested in selling one of them. My question is can I take the proceeds from the sale and investment it to the other property (paying down a mortgage, paying off a second mortgage) and defer the capital gains taxes?

Answer: You need to find a qualified 1031 exchange administrator to assist you with this.

The simple version: You sell your property, and within 30-60 days must identify a new "like-kind" property to purchase. Like-kind means any real property is equal to any real property, in most cases, you could exchange raw land for an apartment building. Your sales proceeds are held with the 1031 administrator, and they put your money down when you close on the new property, which must be within 6 months.

This will defer your capital gains. You will of course have to pay the 1031 guys, but ultimately it's a great deal.

Ask them about how to eventually take all your deferred capital gains and purchase a single-family home for rent. I've heard you can do that, rent it for a year or two, then move into it as your primary residence and never pay tax on that money, ever. And it's all supposed to be perfectly legal.

I've had clients using the 1031 program, it's complex but effective.

Title companies are required to file a 1099 when you sell a home to the IRS, so YES THE IRS WILL KNOW!!! Ignore the idiot who said that.

Flipping Houses For Dummies $8.99 "This book is designed for realty investors who want to profit from buying below market, making cosmetic improvements to add value, and then quickly reselling. But real estate agents and home buyers should also study it because of the valuable insights offered by a longtime, very successful real estate broker. On my scale of one to 10, this superb book rates an off-the-chart 12."—Robert BrussYou...

Investing in Duplexes, Triplexes, and Quads: The Fastest and Safest Way to Real Estate Wealth $8.93 Amass more than $900,000 in properties in one year, without using any of your own money, or that of your investors. Real estate investing can be an excellent way to build wealth. With its advantages of cash flow, appreciation, tax benefits, equity buildup and leveraging, real estate may be the only vehicle that can carry the average person to retirement wealth. Real estate investor, attorney, and ...

The Complete Guide to Buying and Selling Apartment Buildings $18.07 Whether you?re a first-time real estate investor or a seasoned professional, The Complete Guide to Buying and Selling Apartment Buildings helps you map out your future, find apartment buildings at a fair price, finance purchases, and manage your properties. Now revised and expanded, this Second Edition includes tax planning advice, case studies of real acquisitions, and appendixes that add detail ...

Estate tax set to expire Thursday

Benjamin Franklin's maxim that "nothing is certain but death and taxes" remains true. But a congressional stalemate has left the federal estate tax, the levy on assets left to heirs, in doubt for at least part of 2010.

How to Make Out Most of Selling My Property After Taxes?

Question: Does unemployment really count as taxable incom?

I don't know whether to claim my unemployment or not. According to irs.gov unemployment is not earned income, so if you only get credit for earned income why would you want to claim it? I have recieved my 1099-G, according to answers on a similar question it is taxable but absolutely zero taxes were withheld from my unemployment so I don't think I'm going to claim it. It only harms my refund if I do. So why should I?

Answer: Yes, legally, unemployment does count as taxable income. You were getting paid weren't you? Why wouldn't the government tax it?

The impact of inflation, unemployment, and secular influences on the distribution of personal taxable incomes in Australia ...

Fitch Downgrs Riverside Public Financing Auth's 2007 Series A&B TABS to 'BBB'; Outlook Stable

SAN FRANCISCO----Fitch Ratings takes the following rating action on Riverside Public Financing Authority as part of its continuous surveillance effort:

A Truthful Campaign Ad: John Cherry for Michigan Governor 2010

Question: We were paid a pain & suffering amount last year from a court case-is it taxable?

Do we need to report it-I'm guessing we do but it seems wrong to tax us on a settlement--Also the lawyer was paid separately from us-so what do we do about a 1099 that was mailed to us that says Misc income stating we were paid the total of both his and our checks?
We live in California-

Answer: Settlements for physical injury or illness are NOT taxable. If any amounts were flagged for accrued interest or punitive damages those portions would be fully taxable as ordinary income. An amount paid for "pain and suffering" is neither of those so is not taxable.

Ways to cope with crushing credit card bills

With delinquencies running at all-time highs, issuers more willing to negotiate What if you can't pay your credit card bills?

MeltDown #477 EMERGENCY ECONOMIC STABILIZATION

New Manulife fund targets 6% annual yield

Manulife Mutual Funds has launched a new fund designed to help investors achieve higher yields in the current low interest rate environment.