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Determining the Basis of Property

(For a discussion of the tax treatment of the sale and trade of property, see here.) When you sell property, you’ll either have a gain or loss. The lingo associated with this gain or loss is not always intuitive, but is necessary for understanding the overall taxability of the transaction. In that vein, this post [...]

Types of Income: Other Income

(For the articles on wages, salaries, and tips; interest; dividends and other distributions; or rental income and expenses, click here, here, here, or here respectively.) “Other income” is the type of vague phrase that makes people hate the tax code. When all the other types of income on the Form 1040 are exhausted, you have this sink [...]

Types of Income: Rental Income and Expenses

(For the articles on wages, salaries, and tips; interest; dividends and other distributions; or other income click here, here, here, or here respectively.) This article deals with the ins and outs of rental income. For our purposes, rental income is derived from the leasing of real property on a short or long term basis. The aggregate of [...]

Types of Income: Dividends and Other Distributions

(For the articles on wages, salaries, and tips; interest; rental income and expenses; or other income click here, here, here, or here respectively.) An advantageous way to retire is to live on dividends. This would mean that you have invested your money so wisely over the course of your working life that you get paid [...]

Types of Income: Interest

(For the articles on wages, salaries, and tips; dividends and other distributions; rental income and expenses; or other income click here, here, here, or here respectively.) Almost everyone has heard of interest and knows what it is, essentially, making money on your money. It’s a fact of our financialized world, and one that has become [...]

Types of Income: Wages, Salaries, and Tips

(For the articles on interest; dividends and other distributions; rental income and expenses; or other income click here, here, here, or here respectively.) This post might seem more or less like a no-brainer because it talks about two of the types of income that are most commonly found on an individual’s federal tax return. However, [...]

What are Education Savings Bonds?

Savings bonds are the generally unsexy investment instrument where a certain principal amount is invested with the federal government and an amount of interest is received over the term of the bond. It’s not glamorous or high risk and therefore considered a bet that’s very safe to make. In terms of tax treatment, the interest [...]

An Overview of Qualified Tuition Programs AKA 529 Plans

Qualified tuition programs, also known as 529 plans, allow a taxpayer to set up a specified account for the purpose of paying the qualified education expenses of a designated beneficiary at an eligible educational institution. The benefit of setting up a 529 plan comes from the fact that distributions, including any gain that may have [...]

Business Entity Tax Preparation: C Corporations

(For the tax preparation of single member limited liability companies, partnerships, and S corporations click here, here, and here respectively.) C corporations, which are the traditional corporations that people think of when you say the word “corporation,” have fallen significantly out of favor over the course of the last several decades with small businesses. The [...]

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