Capital Gains – DougFreemanCPA.com

Unlocking the mystery of taxes on employer-issued nonqualified stock options

Leave a Comment / (LTCG) Net Long-Term Capital Gain, (NIIT) Net Investment Income Tax, Capital Gains, Capital Losses, Employee Stock Ownership Plans, Employment Tax, Federal Income Tax, Stocks, Tax Planning / Douglas Freeman

Employee stock options remain a potentially valuable asset for employees who receive them. For example, many Silicon Valley millionaires got rich (or semi-rich) from exercising stock options when they worked for start-up companies or fast-growing enterprises. We’ll explain what you need to know about the federal income and employment tax rules for employer-issued nonqualified stock […]

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C Corporation, Capital Gains, Estate Planning, Limited Liability Partnership (LLP), LLC, Pass Through Taxation, Past-Through Entities, Real Estate, Small Business, Small Business Owners, Small Business Tax Tips / Douglas Freeman

Does your business require real estate for its operations? Or do you hold property titled under your business’s name? It might be worth reconsidering this strategy. With long-term tax, liability and estate planning advantages, separating real estate ownership from the business may be a wise choice. How taxes affect a sale Businesses that are formed

Planning your estate? Don’t overlook income taxes

Capital Gains, Estate Planning, Estate Tax, Federal Estate Tax, Gift and Estate Tax / Douglas Freeman

The current estate tax exemption amount ($13.61 million in 2024) has led many people to feel they no longer need to be concerned about federal estate tax. Before 2011, a much smaller exemption resulted in many people with more modest estates attempting to avoid it. But since many estates won’t currently be subject to estate

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Be aware of the tax consequences of selling business property

Capital Gains, Federal Taxes, Ordinary Income Tax, Sale of Business Assets, Small Business, Small Business Owners, Small Business Tax Tips, Tax Laws / Douglas Freeman

If you’re selling property used in your trade or business, you should understand the tax implications. There are many complex rules that can potentially apply. To simplify this discussion, let’s assume that the property you want to sell is land or depreciable property used in your business, and has been held by you for more

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House rich but cash poor? Consider a reverse mortgage strategy

Capital Gains, Federal Taxes, Home Equity Conversion Mortgages (HECM), Home Mortgage / Douglas Freeman

Are you an older taxpayer who owns a house that has appreciated greatly? At the same time, you may need income. Thankfully, there could be a solution with a tax-saving bonus. It involves taking out a reverse mortgage. Reverse mortgage basics With a reverse mortgage, the borrower doesn’t make payments to the lender to pay

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Taxes when you sell an appreciated vacation home

(LTCG) Net Long-Term Capital Gain, (NIIT) Net Investment Income Tax, Capital Gains, Federal Taxes, Rental Property, Vacation Rental / Douglas Freeman

Vacation homes in upscale areas may be worth way more than owners paid for them. That’s great, but what about taxes? Here are three scenarios to illustrate the federal income tax issues you face when selling an appreciated vacation home. Scenario 1: You’ve never used the home as your primary residence In this case, the

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When businesses may want to take a contrary approach with income and deductions

Business Deductions, Business Income Tax, Capital Gains, Corporate Federal Income Tax Rate, Depreciation Deduction (Section 179), Uncategorized / Douglas Freeman

Businesses usually want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it wise to do the opposite? And why would you want to? One reason might be tax law changes that raise tax rates. The Biden administration has proposed raising the corporate federal income

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What you need to know about restricted stock awards and taxes

(LTCG) Net Long-Term Capital Gain, (NIIT) Net Investment Income Tax, Capital Gains, Federal Income Tax, Highly Compensated Employees, Restricted Stock / Douglas Freeman

Restricted stock awards are a popular way for companies to offer equity-oriented executive compensation. Some businesses offer them instead of stock option awards. The reason: Options can lose most or all of their value if the price of the underlying stock takes a dive. But with restricted stock, if the stock price goes down, your

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Investment swings: What’s the tax impact?

(LTCG) Net Long-Term Capital Gain, 401K, Capital Gains, Federal Taxes, Investment, Investment Income Tax (NIIT), Roth IRA, Self Employed, Self Employment Tax, Simplified Employee Pension (SEP), Stock Market, Tax Planning, Tax-Deferred Retirement Accounts, Taxes 2023, Traditional IRA / Douglas Freeman

If your investments have fluctuated wildly this year, you may have already recognized some significant gains and losses. But nothing is decided tax-wise until year-end when the final results of your trades will reveal your 2023 tax situation. Here’s what you need to know to avoid tax surprises. Tax-favored retirement accounts and taxable accounts. If

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Selling your home for a big profit? Here are the tax rules

(NIIT) Net Investment Income Tax, Capital Gains, Federal Taxes, Modified Adjusted Gross Income (MAGI), Tax Considerations of Selling Your Home, Tax Rules for Selling Your Home / Douglas Freeman

Many homeowners across the country have seen their home values increase in recent years. According to the National Association of Realtors, the median price of existing homes sold in July of 2023 rose 1.9% over July of 2022 after a couple years of much higher increases. The median home price was $467,500 in the Northeast,

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