February 8, 2016

What Counts as “Boot” in a 1031 Exchange?

What Counts as "Boot" in a 1031 Exchange?

1031 exchanges can include “boot,” which is an unofficial term for other property received in the exchange.

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Radio Interview: Wills, Estates, and Beneficiaries

Live Oak

David and host Rob Schilling discuss what estate planning is, why you want to do it, and explain some of the jargon.

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2016 Employer-Sponsored Retirement Account Limits

Retirement Cash Jar

Here are the limits for how much your employer can add to retirement accounts on your behalf.

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Six Creative Beneficiary Designation Ideas

Six Creative Beneficiary Designation Ideas

These are just some examples of the creative beneficiary designations, but the important part is to dream big about what your wishes are.

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After-Tax IRA Contributions Must Be Reported On IRS Form 8606

After-Tax IRA Contributions Must Be Reported On IRS Form 8606

The backdoor Roth strategy involves contributing after-tax funds to a traditional IRA.

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2016 Retirement Plan Limits

Retirement Cash Jar

Knowing how much you can contribute to your retirement accounts is important.

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Gifting Appreciated Stock To Family Members

Gifting Appreciated Stock To Family Members

For children with lower incomes, there is an opportunity to give them appreciated stock to shift the capital gains to a lower tax bracket.

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2016 Tax Facts

2016 Tax Facts

Here’s a quick guide to the tax brackets and some other useful information for 2016.

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What is the Kiddie Tax?

What is the Kiddie Tax?

The kiddie tax was first added to the tax code in 1986 for children under age 14. Now, it can burden them until they are 23.

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Trust Protections from Creditors and Spendthrift Beneficiaries

Royal Guards

The beauty of trusts is that they are very flexible, and an estate lawyer can help you craft a document that will follow your wishes and give you peace of mind.

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Mailbag: Where Does Cost Basis Go in a Partial 1031 Exchange?

Mailbag: Where Does Cost Basis Go in a Partial 1031 Exchange?

In a 1031 exchange, the cost basis of the property you give up is rolled into the new property you receive.

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Utilizing Uncommon Beneficiary Designations

Utilizing Uncommon Beneficiary Designations

Will substitutes sacrifice some of the customization of trusts but avoid the accounting complexities.

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Understanding Your IRA Required Minimum Distributions (RMDs)

Understanding Your IRA Required Minimum Distributions (RMDs)

After you reach the age of 70 1/2, the IRS requires you to begin taking minimum distributions from your traditional retirement accounts.

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When Are Taxes Due On A Roth Conversion?

When Are Taxes Due On A Roth Conversion?

Any tax which is ultimately going to be owed is owed by April 15th. Otherwise it may be subject to interest and penalties.

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Mailbag: When Can I Move Into a 1031 Property?

Mailbag: When Can I Move Into a 1031 Property?

Because 1031 exchanges are a great way to defer paying large amounts of capital gains tax, the IRS tends to be suspicious of them.

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What Capital Gains Is Owed For The Sale Of Gifted Stock?

What Capital Gains Is Owed For The Sale Of Gifted Stock?

It is better to leave stock to a family member in your estate plan than to gift them the stock while you are alive.

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Jeb Bush’s Tax Plan

Jeb Bush's Tax Plan

Bush’s tax plan is in good company with Trump, Rubio, and Lee. It hits many common Republican talking points but doesn’t seem to take its own reasoning very seriously.

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Why You Should Use a Donor Advised Fund

Why You Should Use a Donor Advised Fund

We highly recommend a Donor Advised Fund for generous investors.

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Can I Write My Own Estate Plan?

Can I Write My Own Estate Plan?

The shortest answer is yes, you can. But just because you can, doesn’t mean you should.

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Radio Interview: Which Retirement Accounts Should I Fund?

Radio Interview: Which Retirement Accounts Should I Fund?

David John Marotta was interviewed on radio 1070 WINA discussing which retirement accounts you should fund for the best tax outcomes.

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How Frequently Should I Redo My Estate Plan?

How Frequently Should I Redo My Estate Plan?

Here are the most common reasons that your plan might need to be updated or revised and what to do about them.

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Donald Trump’s Tax Plan

Donald Trump's Tax Plan

Tax season under Trump’s plan would likely be just as complicated but slightly less painful.

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How Much Can I Contribute To A Roth IRA If I Earn Too Much?

How Much Can I Contribute To A Roth IRA If I Earn Too Much?

I’m on the borderline for being able to contribute to a Roth IRA. How do I determine how much I can contribute?

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How To Correct Excess Roth IRA Contributions

How To Correct Excess Roth IRA Contributions

Regardless of the reason, if you have put too much money in your Roth IRA, the solution is the same.

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What is a Backdoor Roth?

What Is A Backdoor Roth?

Even over the income threshold, you may still be able to add funds to your Roth IRA with what is called a backdoor Roth.

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When Should You Stop Funding Your HSA?

When Should You Stop Funding Your HSA?

You’ve opened your HSA and funded it for several years. When should you stop funding it?

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Mailbag: Marco Rubio and Mike Lee’s Tax Plan

Mailbag: Marco Rubio and Mike Lee's Tax Plan

Is each dollar value the average for that category or is it really the average for a family with $88,871 in annual income?

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Marco Rubio and Mike Lee’s Tax Plan

Marco Rubio and Mike Lee's Tax Plan

Rubio and Lee do make definite improvements but sadly, this good is largely undone by a well-meaning but naive tilt of the playing field towards parents.

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Education Improvement Scholarship Tax Credits

Education Improvement Scholarship Tax Credits

Virginia taxpayers can give generously and offset the cost of those gifts through tax credits and the avoidance of capital gains taxes.

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Rand Paul’s Tax Plan

Rand Paul's Tax Plan

2016 Presidential hopeful Rand Paul has released a sketch of an intriguing tax plan.

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Can I Fund My Roth With Book Publishing Royalties?

Can I Fund My Roth With Book Publishing Royalties?

Roth IRAs can only be funded with earned income and therein lies the confusion.

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How to Intentionally Realize Capital Gains

How to Intentionally Realize Capital Gains

Careful tax planning can avoid much of the capital gains tax.

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Radio: Knowing When to Realize Capital Gains

Old Radio

David Marotta was interviewed on the radio discussing how to figure out know when to realize capital gains and how much to realize when you do.

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Should I Fund a Roth or a Traditional Account?

Should I Fund a Roth or a Traditional Account?

As with many financial decisions, our gut feelings deceive us on this matter.

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A Guide to Your W-4

A Guide to Your W-4

All new employees have to fill out form W-4, but despite its ubiquity, most people don’t understand it.

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Tax Alpha: How to Fix a Client Portfolio

Tax Alpha: How to Fix a Client Portfolio

Good financial planners can be worth their weight in gold in helping clients build a tax-efficient portfolio.

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Why Liberals Should Hate Real Estate Taxes

Why Liberals Should Hate Real Estate Taxes

Taxes hurt ordinary folks before the extraordinary ones, and it can hurt them badly.

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How to Be a Good Executor

boxwood hedge maze

You’ve been named the executor of a relative’s will – now what?

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Tax by Fiat: Legacy of Alexander Hamilton

Tax by Fiat: Legacy of Alexander Hamilton

Hamilton, like our current president, sees people as temporary holders of wealth until such time as the government decides to expand.

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Schwab Intelligent Portfolios: Incomplete Rebalancing Algorithm

Schwab Intelligent Portfolios

See our review of the two pros and nine cons of how Schwab monitors and rebalances portfolios.

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Radio: Twelve Tax Planning Agenda Items To Do Before April 15

birds in snowstorm

It is better to do tax planning all throughout the year, but here are 12 things to do (or plan to do in the coming year) before April 15.

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Tax by Fiat: Legacy of James Wilson

Tax by Fiat: Legacy of James Wilson

The arguments for greater government power have always been the same.

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Preparing Your “Digital Estate” – Hardware and Digital Property

Preparing Your "Digital Estate:" Hardware and Digital Property

You probably have dozens of online accounts and possibly hundreds of dollars of digital property. What happens to it when you die?

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Preparing Your “Digital Estate” – Social Media Edition

Preparing Your Digital Estate

What happens to my Facebook, Twitter, Wordpress, and other online accounts when I die? Could I decide?

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Mailbag: Is There An Advantage For Me To Do A Roth Conversion?

Is There An Advantage For Me To Do A Roth Conversion?

My wife and I are 65 years old and I am newly retired. Is there any advantage in doing a Roth conversion this year?

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How Much Does the Government Cost?

How Much Does the Government Cost?

Is it fair for the government to confiscate a full quarter of the average person’s earnings every year? Where does it all go?

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Get Your Estate in Order, Pt. 3: Choose an Executor

Abandoned Plane

Who do I choose to be the executor of my estate? What will their basic duties be?

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Get Your Estate In Order, Pt. 2: Physical Assets

Man in Ocean

Today’s question: What do I want to happen to my physical belongings and assets after my death?

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Index of 2015 and 2014 Tax Tables

Tax Tables

Want the full list of tax tables? Here they are in one place for easy browsing.

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Get Your Estate Plan In Order – Even if You’re Only 26

Woman near campfire

Today’s question: What if something happens to me and I am not able to make decisions for myself?

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