Matt Carroll Atlanta Braves

Crypto investors who lost money in 2022 might take advantage of a critical tax loophole

Published on:04/04/2023

If you were a cryptocurrency investor who lost money in 2022, you could use a significant tax loophole to help you recover your losses. You must record your earnings and losses, sell at a loss to offset a capital gain, and file your taxes.

For crypto investors in 2022, selling at a loss to offset a capital gain can be a wise move. It can be used to minimize your tax burden, and you may be able to deduct up to $3,000 per year. However, there are several crucial guidelines to be aware of.

In the United States, investors can utilize losses on one asset to offset gains on another. Losses are calculated as the difference between an asset's fair market value at the time of acquisition and its fair market value at the time of sale. If you sell an asset at a loss, you subtract the difference between the original cost basis and the sale price from your taxable gain.

Some countries have their own unique capital loss calculation rules. There is no limit to how far you can carry these losses forward to offset future gains under these laws. However, before using this method, it is best to consult with a tax professional.

Each year, investors in Canada can deduct up to half of their capital losses. However, you cannot claim a loss in the same year as you purchase securities due to the wash sale rule. To avoid this problem, you can postpone repurchasing the security until the loss is recognized.

This tax method can help you reduce your overall tax bill, but keep in mind that you must record any losses on your tax return. It is also critical to understand how to keep track of all of your cryptocurrency transactions.

If you plan to acquire or sell cryptocurrency, you should keep track of your profits and losses. This will assist you in understanding the tax implications of your transaction. It will also assist you in avoiding any potential tax fines.

Because the IRS considers all cryptocurrencies to be property, they are liable to capital gains taxes. You can offset the tax by selling your assets at a loss or by automating the process with a crypto tax software application. However, determining which assets to sell and which to maintain can be difficult.

A portfolio tracker is the greatest way to keep track of your capital gains and losses. An excellent one will provide you with a summary of your financial condition and allow you to see how much you've made and lost each month. You can also compare your earnings and losses over time.

Some bitcoin investors sell their holdings at a loss on purpose. This is referred to as tax-loss harvesting. While there are tight limits in place, it is legal and can result in significant tax savings.

Crypto tax software such as CoinLedger can assist you with this. It links to several exchanges to generate tax reports and import trade history. These reports can then be exported to TaxAct or TurboTax.

If you are a cryptocurrency trader, you must understand the intricacies of taxation. Depending on how long they have had the cryptocurrency, crypto investors will face varied rates. Tax-loss harvesting tactics can also be used to decrease a taxpayer's liability.

Cryptocurrency purchases and sales can result in capital gains and losses. These losses must be reported on your tax return. The IRS considers cryptocurrency to be property. As a result, it is critical to maintaining a note of your fair market value, the date you purchased it, and the date you sold it. You may be required to pay sales taxes on your gains and losses, depending on your location.

The IRS has begun to take a more aggressive approach against cryptocurrency tax avoidance. If you do not record your cryptocurrency gains or losses, you may face hefty penalties.

If you purchased or sold more than $600 in cryptocurrency in a calendar year, you must file Form 1099-MISC. If you make more than 200 payments in a calendar year, you may receive a Form 1099-K. Using a software provider like TaxBit might help you file your crypto trades more easily.

In addition to the standard annual tax reporting, you may be required to complete and submit an IRS Form 8949 to track your bitcoin transactions. Popular tax software can import this form.

Should I Be Responsible for Paying the Taxes of a Deceased Relative?

Published on : 03-27-2023

Having to deal with the taxes of a deceased loved one can be a trying and upsetting experience. As a result, it is recommended that you collaborate with a financial counselor while preparing an estate plan or putting a relative's plan into action.

Filing an estate tax return is often the responsibility of the executor of the deceased person's will or the surviving spouse of that individual. On the other hand, the burden may fall on a next of kin if there is neither an estate representative nor a surviving spouse.

When a person inherits property from a deceased relative, they must make a payment known as the inheritance tax. Cash, securities, and other assets obtained from a family member are all subject to tax.

The amount a person is required to pay is determined by their relationship to the relative and the location of their home. In 2022, Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania will all have enacted some form of inheritance tax.

Gift-giving, asset and investment repositioning, and establishing revocable trusts are a few methods that can assist you in evading an inheritance tax. There are also more options available. You must take the necessary steps to maximize the benefits of your estate and reduce the inheritance tax burden that will be incurred upon your passing.

Bequests made to surviving spouses are not subject to inheritance taxes in any state, while lineal heirs can receive an unlimited amount if given a legacy. State inheritance taxes vary greatly from one another. Non-relative heirs are subject to a maximum tax rate that ranges from 4.5 percent in Pennsylvania to 18 percent in Nebraska.

Many people don't understand how taxes operate, even though they constitute a significant element of the financial life cycle. If you do not have a clear understanding of what is involved after the death of a loved one, it can be perplexing and stressful. This is especially true if you do not know what to expect.

The type of taxes owed, the degree of income, and the types of assets owned by a deceased relative all play a role in determining the relative's tax liability after their death. This procedure can be difficult to understand, but it is not impossible to do so, and professionals are ready to assist you if you need assistance.

On the money you earn throughout the year, you will be subject to a tax known as income tax. This kind of tax may be imposed by the federal government, a state, a city or township, a county, or even a school district. In most cases, the tax is progressive, which means that the amount of taxation you owe rises in proportion to your increasing income.

If you inherit money from a deceased person, that money is typically exempt from federal income tax. Still, there is one exception to this rule: the money in question must be interest earned on the inherited property before the original owner passes away. On the other hand, if you get interested in a tax-deferred retirement plan such as an IRA or 401(k), this will be deemed income and subject to taxation.

When a person passes away, they typically leave behind several different assets, and all accounted for in their estate. This comprises many types of financial assets, such as real estate, equities, bank accounts, insurance policies, etc.

If the value of a deceased person's assets exceeds the threshold for paying estate tax, a tax return on the estate must be submitted. This is determined by considering the total worth of the decedent's estate at the time of their passing and any gifts given during their lifetime.

Most states also have estate taxes, varying exemption amounts depending on the state. In addition to the estate tax paid at the federal level, residents of the following states must pay estate taxes: Connecticut, Delaware, Hawaii, Illinois, Maine, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington.

A lien tax is a type of property tax collected by local and state governments on an unpaid balance of property tax owed by the homeowner. They are frequently used as a funding source for other governmental activities, such as maintaining schools and parks.

When a person passes away, the estate they leave behind includes the property they possess. This may result in a substantial tax liability for you and any heirs you leave behind.

However, there are a few things you may do to reduce the amount of money you owe in taxes after the death of a loved one in your life. First, you should check that you have a valid will in place.

If you have a will, you can appoint a person of your choosing to assume the legal title of your home following your passing. By taking these steps, you will reduce the likelihood that your home will become a part of your relative's estate, who would then be responsible for paying the property taxes on it.

You also can apply to have a tax lien discharged or subordinated if you are the owner of a property with a tax lien attached. This option will vary depending on the property type. Still, it can help remove the lien placed against your property by the Internal Revenue Service, making obtaining a mortgage or loan simpler.

The SEC may require swing pricing for the majority of funds

Published on : 03-02-2023

Most open-end funds, except money market funds and exchange-traded funds, would be required to employ "swing pricing," a liquidity management mechanism, under a proposed regulation from the Securities and Exchange Commission (SEC).

Swing pricing is a technique for passing along to the shareholders taking part in such activities the expenses associated with inflows or outflows of shareholder purchases or redemptions. The goal is to lessen dilution and provide investors with more pricing information.

Fund providers have the option of using swing pricing to meet anti-dilution objectives. Depending on the needs and requirements of a fund, it might be entirely or partly implemented.

In full-swing pricing, an open-end fund's net asset value (NAV) is changed daily to account for expenses incurred by shareholders who redeem or subscribe for shares. When partial swing pricing is in effect, the change only occurs when net redemptions or subscriptions reach a certain level.

Although certain funds utilize full swing pricing, many other funds also employ an alternative liquidity charge that is more transparent than a swing pricing adjustment and does not affect the fund's NAV.

While there are alternative solutions, the SEC is now examining a proposal that might require swing pricing for most funds. These would, however, need modifications to fund operations and procedures, which insurers and underlying funds have vehemently resisted. Also, they can call for updated regulations and practices, which would pressure all financial market participants, including suppliers and intermediaries, to comply.

The Investment Company Act's Rule 22c-1, which regulates open-end funds other than money market funds and exchange-traded funds, has been suggested for amendment by the SEC (ETFs). This amendment would require most open-end fund firms to implement a set of guidelines known as Swing Pricing Rules.

According to these regulations, an open-end fund would modify the price per share of its shares following information on investor flow obtained from its operations. When a fund's net trading exceeds a specific limit, an adjustment called a "swing factor" is made.

The SEC asserts that this novel technique may shield investors from market runs and distribute the expenses of unit purchases and redemptions more fairly. The plan also raises significant concerns around fund swing pricing implementation and investor effects.

Changing how an open-end fund manages daily shareholder flows could be difficult and expensive. Moreover, there would need to be a significant change in transaction timeframes.

By passing on trading expenses related to funding transactions to those who redeem or buy shares, the swing pricing approach may be utilized to lessen dilution and protect present investors. These expenses include transaction fees and underlying spreads, which are often paid for by long-term unitholders when they purchase or sell units of a fund.

Swing pricing modifies a fund's net asset value (NAV) per share instead of fair value pricing, which modifies a security's price based on the most recent trading prices. As a result, the cost of significant shareholder acquisitions and redemptions may be passed on to those who buy or sell shares.

The SEC's proposed modifications would require most open-end funds to implement swing pricing regulations if they had net redemptions or purchases that surpass a particular level (Swing Threshold). The net buy or redemption transaction expenses would be allocated to the fund's redeeming or purchasing shareholders when the Swing Pricing Administrator deems that a Swing Threshold has been met. This would be done using a swing factor to alter the NAV per share.

The SEC could require swing pricing for the majority of funds, which would alter how shareholders purchase and sell shares. They may get a price more or less than the net asset value per share in place of it.

Swing pricing is a strategy fund firms use to pass on trading-related fees to their investors. Doing so makes run risks on funds less likely, and owners are protected from dilution.

Fund providers must set up policies for this to function. These guidelines are intended to help fund firms handle substantial net asset movements most effectively.

The SEC proposes mandating swing pricing strategies for all open-end funds (apart from closed-end and exchange-traded funds). Written copies of these policies must be kept in a place that is simple to find and must have been in effect for at least six years. The SEC also mandates that a fund's board must choose an administrator to carry out these regulations.

Crypto investors who suffered losses in 2022 might utilize a crucial tax loophole

Published On: 02-27-2023

If you invested in cryptocurrencies in 2022 and lost money, you might be wondering if there are any methods to use a crucial tax loophole to offset that loss. This technique, known as "loss harvesting," enables investors to sell assets at a loss during market downturns or at the end of the year to reduce their overall tax obligations.

Investors in cryptocurrencies are in shock following a year that began with a bear market and finished with an enormous dump. Despite the fact that the crypto bear market has caused many investors to lose money, there is a small bright spot that can help them reduce their tax liability and get back on track.

Harvesting unrealized losses from taxable assets are the key to this technique. By doing this, you can balance out your capital gains and losses for the now and the future. Losses from cryptocurrency investments can also be used to offset capital gains from other investments. However, it would help if you exercised caution while using this tactic.

Although this tax break is likely to end, it still enables investors to liquidate their crypto holdings and repurchase them again right afterward without breaking the wash trading laws. If you have a cryptocurrency asset that has long-term potential and that you can't afford to lose, it can be beneficial.

The IRS's wash sale regulation, which does not apply to equities or securities, has a loophole that allows cryptocurrency investors who have lost money to use it. If they buy the same or comparable guarantee within 30 days of the initial transaction, investors cannot claim a capital loss on the sale of protection under control.

Due to the extreme volatility of the cryptocurrency market, tax-loss harvesting tactics have long been used by cryptocurrency investors to take advantage of this loophole and avoid paying taxes.

However, Congress has been paying more attention to the cryptocurrency business in recent months, so this chance will pass quickly. Legislators need to revive legislation that would outlaw capital loss deductions for brief cryptocurrency transactions.

You could have to pay capital gains tax on the value of your cryptocurrency investments. This is so because cryptocurrencies, albeit at lower rates, are taxed similarly to equities.

However, there are several things you may do to lower your tax liability. One of them is to give your money to a good cause. Gifts made in cryptocurrencies are tax deductible for investors since the IRS treats them the same as cash donations. Numerous charitable organizations take donations.

Losses on other assets may also be used to offset capital gains. If you have two stocks that have increased in value, for instance, you may sell them for a loss and use the difference to reduce the profits on another investment.

There are various methods for investors who lost money in 2022 to avoid paying taxes on cryptocurrency. These include trading in new coins first, then selling old ones.

As with any other capital asset, the IRS treats cryptocurrency profits and losses equally. This means that you must pay taxes on the difference between the price you paid for your cryptocurrency and its market value.

However, the amount of tax you pay will change according to how long you owned the cryptocurrency. Tax rates on long-term capital gains are lower than those on short-term capital gains.

Long-term holders of cryptocurrency can also employ a crucial tax deduction known as "loss harvesting" to reduce any gains they make from selling their coins. According to Greene-Lewis, this may enable investors to lower their overall tax burden.

This is a crucial tactic to take into account, especially if you're a novice or young investor in the bitcoin market. It's critical to remember that the IRS will probably fix this loophole shortly. It is, therefore, essential to consult a tax expert before utilizing this tactic.

A trustee has the authority to withdraw funds from a trust account.

Published on : 01/31/2023

A trustee typically only spends trust funds on matters that benefit the trust. This covers things like paying for upkeep or distributing revenue to recipients. On the other hand, a trustee may spend trust assets for personal purposes. This is referred to as embezzlement and is a significant violation of trust.

The duty of loyalty imposes on a trustee the obligation to operate the trust only in the interests of the beneficiaries. This implies that the trustee cannot profit from the trust or make arrangements for their advantage in its administration. Self-dealing is a common infraction of the obligation of loyalty. This happens when a trustee sells or purchases trust property for personal benefit without the beneficiaries' permission.

A trustee must take reasonable precautions to protect trust property to avoid this. This involves maintaining it distinct from other assets and appropriately designating it as trust property. A trustee must also account for trust assets and revenue at least once a year. This enables a beneficiary to see how trust assets and revenue were utilized and dispersed.

In running a trust, trustees have various tasks and duties. They must adhere to the trust's directions and make all decisions in the best interests of the trust and its beneficiaries. They must do all in their power to safeguard the trust's assets and prevent mismanagement. They must also retain detailed records of all trust-related activity.

When a trustee is appointed to administer a trust, they are bound by the provisions of the trust agreement and the law. This involves distributing income and principal by the trust's instructions. Trustees must also invest trust assets in a way that maintains and grows them for the benefit of the beneficiaries. Managing the trust's investments necessitatesthe trustee keeping clear and accurate records and a responsible attitude.

A trustee may not favour one beneficiary over another unless the settlor expressly indicates so in the trust instrument. A trustee may be held responsible for a breach of duty elsewhere. A trustee can be compensated from the trust's assets, although the amount is usually specified in the trust instrument. This pay may cover the trustee's legal, accounting, or investment management charges.

Furthermore, the trustee has a responsibility of impartiality. If a trust includes many beneficiaries, the trustee must behave fairly and equitably in determining which investment possibilities will best meet the requirements of each beneficiary. Your trustee is responsible for running the estate in line with the conditions of the trust, whether you are the grantor or a beneficiary. They must set aside their interests, prejudices, and opinions to do what is best for the trust's beneficiaries.

As a beneficiary, you must be informed and understand the trustee's decision-making process. If you aren't, you may be inclined to reach an erroneous conclusion and perform the opposite action. It may be tough to say no if you are a beneficiary and your aunt demands a particular percentage of the trust's assets to purchase a property or establish a company. Having a neutral person act as trustee or co-trustee may make such a choice easier.

In addition to these responsibilities, a trustee must use caution when managing the trust's assets. In addition, they must retain competent specialists to appraise investments and acquire suitable legal and tax guidance.

Customers of FTX want that their names to be kept private in bankruptcy court

Published on :- 01-27-2023

To safeguard their personal information, a group of FTX clients filed a motion in bankruptcy court to keep their identities hidden. The corporation intends to sell four companies, so they need to keep their clients' names confidential. These consumers are concerned that if their names and personal details are made public, their identities will be stolen and exploited against them.
If you're unaware of FTX, it's a massive cryptocurrency exchange. It failed this week, trapping many of its client's assets on the exchange, and many analysts are questioning FTX's business methods.
Senators Elizabeth Warren and Richard Durbin ordered FTX to give financial details in a letter. According to the Senate's Economic and Consumer Policy Subcommittee, the exchange should reveal any individuals engaged in FTX's financing.
The counsel for FTX has informed the court that he wants to keep some details private. He cites the General Data Protection Regulation, or GDPR, as one of the reasons FTX wants to keep some details private.
The attorneys for FTX say that if the identity of FTX's customers were divulged, rivals might take their money. They also assert that FTX's client list is a significant asset.
The FTX Group appeared in court for the first time since its collapse. It must address various problems, including its blame for mishandling consumer cash. One of the problems is whether FTX can continue to function despite owing creditors billions of dollars.
Several FTX subsidiaries declared bankruptcy at the same time. Alameda Research, a sibling business, was one of them.As part of its Chapter 11 petition, FTX intends to sell four subsidiaries. The insolvent exchange owes creditors billions of dollars and is attempting to find the cash to compensate them. It recently announced plans to divest FTX Japan, LedgerX LLC, Embed Technologies, and FTX Europe.
The FTX group has just declared bankruptcy in Delaware. The company's financial procedures were regarded as a "total failure" by its new CEO, John J. Ray. Since the corporation declared bankruptcy, some divisions have halted operations. Furthermore, the value of these enterprises has declined.
FTX has signed 26 confidentiality agreements with prospective purchasers, but the firm has not disclosed much information on the businesses it sells. The US bankruptcy trustee, Vara, expressed worry about the absence of information. He proposed that an impartial inquiry be conducted before the deal is finalized.
FTX would require court authority to sell the enterprises. Hearings will be requested in March. If the sales are permitted, interested parties may submit bids for certain units. The final auction date will be announced in mid-March.
Vara said that FTX had received a slew of unsolicited bids. He claims that each company has its management staff, IT infrastructure, and customer accounts.
FTX is a corporation established in the United States that just went bankrupt. The Commodities Futures Trading Commission estimates it lost more than $8 billion in client monies. However, the exact figure is uncertain. FTX filed for Chapter 11 bankruptcy protection in Delaware in November.
The US Trustee is a division of the Justice Department in charge of corporate bankruptcy proceedings. It is responsible for deciding whether FTX complies with bankruptcy legislation. During the bankruptcy proceedings, a group of FTX consumers wants to remain anonymous. They claim that making their identities public might expose them to identity theft.
According to FTC's counsel, selling the company's assets to collect debts would enhance the value of the bankruptcy estate. Among the assets under consideration are FTX Europe, FTX Japan, and the stock-trading platform Embed.

While FTX's present internal controls are unlikely to allow for strict adherence to these criteria, FTX could identify only creditors covered by the DPA. Those creditors might then continue to be paid by the corporation.

Units of crypto lending platforms Genesis and Wintermute are among the unsecured creditors on FTX's official committee. Debtors want to avoid problems with US and UK authorities, among other reasons. Debtors claim that exposing personal information breaches the General Data Protection Regulation of the European Union. They also identify other examples, some of which include FTX.

4 Invaluable Retirement Planning Lessons From 2022

Published on:01/19/2023

If you're like most people, you are looking for ways to plan for retirement. This isn't always an easy task. There are a lot of factors to consider, including your age, your income, your family history, and your health. You need to take these factors into consideration when calculating how much money you'll need to save to live comfortably in your golden years.

If you're in the process of saving for your retirement, you'll want to understand the differences between 401k plans and 403(b) plans. These two retirement savings vehicles share several features, but their differences can help you decide which plan is the best choice for you.

A 401(k) plan is a tax-advantaged employer-sponsored retirement savings account. Generally, the assets of a 401(k) are invested in a combination of stock, bonds, and mutual funds. The investments can be tailored to fit your needs, and your employer may also offer a matching contribution.

A 403(b) plan, on the other hand, is offered by nonprofit organizations. Its benefits include tax benefits and an employer match. In addition, it is usually less costly to administer.

The main difference between a 401k and a 403(b) is the amount you can contribute each year. Contributions can be up to 100% of your compensation, and in some cases, your employer may match your contributions.

There are two main types of retirement planning products, IRAs and 401(k). Both have their advantages and disadvantages, and each can serve as a useful tool for your retirement plan.

The first type, the 401(k), is a tax-advantaged savings account that is usually set up by your employer. It is a good idea for nearly any employee to participate in one.

However, 401(k) has a few limitations. First, contributions are restricted to employees who have a certain amount of service with the company. Second, it has a maximum annual contribution limit. Also, investments are not tax-free when you withdraw them. Lastly, if you leave the job, you can no longer make new contributions.

The IRA is the more popular of the two. With an IRA, you can invest in a much larger variety of stocks, bonds, and real estate. You can also shop around for low-cost index mutual funds or ETFs.

The 4% initial withdrawal guideline is a commonly-used rule of thumb to determine retirement planning. It is a simple, though not foolproof, a rule to help retirees decide how much to spend each year.

A recent Morningstar study suggested that the 4% withdrawal rule is overly aggressive and needs to be lowered to about 3.3%. This means that your standard of living could take a hit.

However, this does not mean that you should stop following the rule. In fact, a more flexible approach to retirement might actually allow you to revert to normal withdrawals after a period of positive returns.

There are a number of factors that affect your retirement savings, including your state of residence, the size of your retirement account, and your personal tax rate. Using a savvy financial professional can help you determine a retirement strategy that is right for you.

Some people have a huge nest egg, while others want to keep capital intact. Either way, your retirement strategy should consider your specific goals and your specific lifestyle.

Long-term care insurance can be a great way to protect your retirement. It can also provide peace of mind. But the costs of a long-term care policy can vary greatly. There are several options, and you should choose the one that is best for you.

Some of the major long-term care carriers include MetLife, Aetna, John Hancock, and MedAmerica. However, many of these companies no longer offer group coverage

The cost of a traditional long-term care policy can increase significantly. Premiums can range from 70 to 80 percent of the policy's value. That means you may need to pay an extra few hundred dollars a year.

If your current long-term care plan has a guaranteed issue period, you will not have to pay premiums for a certain number of years. This benefit is typically 90 to 180 days.

If your policy does not have a guaranteed issue period, you will have to pay premiums for the life of the policy. This is because insurers cannot legally drop you as a policyholder.