QTIP Trusts Still Offer Advantages

For many people, trusts can play a role in estate planning.  Indeed, a qualified terminable interest property (QTIP) trust may offer benefits to married couples.  That’s especially true for people who are in a second (or third) marriage, because a QTIP trust can prevent a second or third spouse from disinheriting children from a previous […]

Holding Stocks in Retirement Accounts

The stock market goes up and, as we’ve learned, it goes down.  Despite the volatility, stocks have been excellent long-term investments for many decades, and there’s no obvious reason to think that the future will be different.  Regular investing in equities, through bull and bear markets, probably should be part of your strategy for building […]

Renting vs. Buying a Home

Should you buy or rent your home?  This decision can include financial and non-financial factors.  Even if the non-financial aspects are extremely important, you should not overlook the financial side. Crucial Ratio One key to choosing between buying or renting is to determine the annual rent-to-purchase price ratio in the housing market you’re considering.  The […]

Safeguarding e-Data of Your Business

Data breaches at large corporations have been making headlines recently.  The good news is that major corporations have the resources to protect themselves from electronic intruders.  If your company does business with firms traded on public stock exchanges, your personal and business data probably are secure. The bad news?  Thwarted hackers and identity thieves may […]

Cybersecurity & Safeguarding e-Data of Your Business

Passive Activity Losses from Rental Property

In these times of high stock prices and low bond yields, investors may be looking to rental real estate as alternative investments.  This asset class can pay off, in the right situation.  Before making a final decision, however, you should be aware of the tax implications, especially within the realm of passive activity loss rules. Despite […]

LLC or S-Corporation?

Many business owners structure their companies as limited liability companies (LLCs) or S-corporations.  On the surface there are several similarities.  Both types of entities avoid corporate income tax.  Instead, business income is passed out and taxed only once on the tax returns of LLC members or S-corporation shareholders.  Moreover, both LLC members and S-corporation shareholders […]

Link: 6 Exit Strategies for Your Rental Real Estate

The Real Estate CPA
November 1, 2018

Are we at the top of the market?

No one knows for certain, but we are on the longest bull market in history. And at The Real Estate CPA, we believe we’re closer to the top of the market than the bottom.

If you built up a large amount of equity over the last several years through appreciation and principal paydown, now might be a good time to offload some of those investments and lock in profits while it’s still a seller’s market. Especially the properties you don’t want to hold for the next 5 years, or through a recession or downcycle.

Consider Roth Conversions Carefully

My recent post, Rethinking Retirement Contributions, explains why the new Tax Cuts & Jobs Act of 2017 (TCJA) devalues retirement contributions into traditional tax-deferred plans and favors Roth accounts.  Does the same reasoning apply to conversions from Roth to traditional plans?  For a tax standpoint, the answer may be yes, but other factors indicate you should […]

Rethinking Retirement Contributions

The Tax Cuts and Jobs Act of 2017 (TCJA) generally lowered federal income tax rates, with some exceptions.  Among the ways in which lower rates impact tax planning, they make unmatched contributions to traditional employer retirement plans less attractive. Example 1:  Chet Taylor has around $100,000 in taxable income a year.  Chet contributed $12,000 to […]

2018 Depreciation Update: Section 179 and Bonus Depreciation

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (TCJA) was signed into law, and it expanded the Section 179 deduction and bonus depreciation for business property, as follows: Overview of Section 179 Deduction & Bonus Depreciation An explanation of the 2018 Section 179 increases (reflected in the table above) are provided […]