How are dividends taxed? Dividends are treated in one of two ways. Ordinary dividends are treated just like any other income, such as salary your job. In that case, they’re taxed at whatever your ordinary tax rate is. They could also be treated as qualified, which...
What are the tax issues when I rent out part of my home? When most people think about ‘rental properties’, they picture buying a small house or condo and collecting rent from a tenant. The tax issues with doing that are relatively straightforward: you just keep track...
A 1031 Exchange, also called a ‘Like Kind’ or ‘Starker Exchange’, involves the owner of one investment property exchanging it for a different investment property. Because this is treated as an exchange, and not a sale, there are no taxes due on the transaction. Why...
What are self-employment taxes? Self-employment taxes are simply the amounts you pay towards Medicare and Social Security. If you previously worked for an employer, you never had to think about them since they were deducted from your paycheck before you ever got your...
One of the most common questions I get from people who are thinking about starting their new business is how they should set up their business. So let’s walk through some of the various options and which legal entity is right for your new business. Sole Proprietor...
