• Gifted versus Inherited Property

    If property is GIFTED, the receiver of the gift never pays a tax.  The giver of the gift has to deal with gift taxes. If property with a basis (original cost plus improvements) is $200k and the property sells for $500k, there is a $300k profit and is taxable. If instead the property is INHERITED,…

  • IS LIFE INSURANCE TAXABLE?

    SOMETIMES the life insurance company is required to pay interest from date of death to the date they issue the check. i.e. You receive $100,010.  The life insurance $100k is not taxable.  The extra $10 is interest and is taxable. […]Read More… from IS LIFE INSURANCE TAXABLE?

  • A word of caution on property transfers…..

    Let’s say you gave someone $600k of property at today’s market value.  It has been owned along time and only $30k is the original purchase price.  We can add improvements to the original $30k say a pool, additional room,…. Add those improvements of $40k to the $30k and we have what we call BASIS of $70k.  That…

  • 2024 GIFT TAXES – THE BASICS

    In 2024 any individual can give any other individual up to $18,000 of stuff in the calendar year 2024 without any tax implications (no money to pay, no reporting on any tax form). Then the next year could do the same thing.  I’d suggest if a check is written that in the memo section the giver…

  • MEDICARE WENT UP ….  OUCH!

    There are reasons for Medicare to Increase…. Your income is higher.  That’s good and we hope your income stays higher. But what if it increase because of an unusual event… can we explain that and get it lowered? Well, yes, kind of and maybe.  Check this list.  Even if your reason is not on this…

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