There is a misconception about the tax strategy for 2nd or rental homes. Tax payer can move to rental home, live in it for two years before selling it in order to get full exclusion for the gain of $250,000 for single filer or $500,000 for married jointly couple. Reducing the capital gain tax on […]
How to Reduce Capital Gain Tax on The Sale of The Second and Rental Homes. Read More »
There are many reasons for people to sell primary homes during their lifetime. People move to different locations due to work-related move. People may also have to sell their home, upgrade to a bigger home when the family has more members or downgrade the home when kids go to college, out of the home. Deciding
How to Minimize Tax on the Sale of Your Primary Residence. Read More »
A backdoor Roth IRA is a legal way for the high-income earners to contribute to Roth IRA. In general, IRA (Individual Retirement Account) is a tax-advantage vehicle toward retirement savings. There are different types of IRAs; however, this blog post will focus on Traditional IRA and Roth IRA as they are related to the Backdoor
Steps by Steps to Backdoor Roth IRA Read More »
Many of you may hear about IRC §121 exclusion which the taxpayer can exclude the gain up to $250,000 or $500,000 for married filing jointly. I also discuss about this provision in the another post. You can read the post How to Minimize Tax on the Sale of Your Primary Residence. One of the most
Real Estate Tax Trap to Avoid Read More »
Before discussing about the factors for choice of business entity, we should have a good understanding of options that a business can choose from There are some differences between legal entities and tax purpose entities. Federal Tax – Sole Proprietorship, Partnerships, C Corporations and S Corporations Legal Entities – Sole Proprietorship – Partnerships (various types)
Factors for Choice of Business Entity Read More »
Nowadays, most people change at least one job per their lifetime. New employees should explore the benefits that the company has provided to its employees in order to maximize the benefits. The post provides some guidance for employees to take advantages and to maximize the company’s available benefits. Here is the list of common benefits
Company’s Benefits – How to maximize the benefits- Finance 101 Read More »
Why Dividends Received Deduction is important? Dividends Received Deduction (DRD) is available to Corporations. The purpose of the dividends received deduction is to mitigate multiple taxation of corporate income. If a corporation owns a stock in another corporation and receives dividends, then a portion of dividends may be deducted from income as a special deduction
Dividends Received Deduction – DRD (IRC section 243) Read More »
A business can choose accrual method of tax accounting but it has to be eligible to use the cash method of tax accounting. Cash method of tax accounting eligibility In general, a business recognizes income when actually or constructively received Public Law 115-97 provides a guideline for businesses to be eligible to use the cash
Tax Accounting Methods: Cash Method vs. Accrual Method Read More »
I’ve always had a credit score of 800 and above for so many years. However, there was a silly mistake that costed me 90 points. The lower credit score impacted my interest rate and closing cost when I purchased my home in 2019. Automatic Payment is the key to keep up with billing deadlines As
A Silly Mistake Can Significantly Hurt Your Credit Score – A Mistake Should Be Avoided Read More »
There was a request from my well-respected person to have a post for tax implication for ESPP. Therefore, this blog post is dedicated to that person. The post will not go to the definition of the ESPP and how does ESPP work and it only focuses on the calculation of the tax report and adjustment
All You Need To Know About Employment Stock Purchase Plans – ESPP Read More »
