Smaller landlords might gain from state marijuana laws

It’s possible that small landlords will receive an unexpected benefit in states with laws that legalize recreational marijuana. That’s because properties with loans or mortgages from federally chartered banks are prohibited from renting to marijuana dispensaries due to the ban on marijuana production, sale and use under federal law. However, small landlords who own their properties outright or work exclusively with local, state-chartered banks will be able to rent to these businesses. Overall, small landlords have fewer internal and external regulations to manage. They also stand to make good money off these deals because dispensaries tend to pay market or…..

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Key tax questions to consider before moving

If you’re thinking of relocating, consider the following questions before you leave your current home: Q. Will I save money if I move to a different state? A. The short answer is: It depends. You’ll need to work through comparisons of all sorts of numbers, including state and local income taxes, sales taxes, state level estate or inheritance taxes and real property taxes. You also need to consider the cost of living and travel to family or your old location. Tax rules differ by state, sometimes in very small but meaningful ways. Q. Do I pay income tax in both…..

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New rules protect mortgage borrowers

With the goal of preventing a sudden rise in foreclosures as federal bans are phased out, the Consumer Financial Protection Bureau has amended the federal mortgage servicing regulations. The new rules create temporary safeguards to give borrowers time before foreclosure to explore their options, such as selling their homes or loan modifications. The rules apply to loans on principal residences, but generally do not apply to small servicers. They went into effect on Aug. 31. “As the nation shifts from the COVID-19 emergency to the economic recovery, we cannot be complacent about the dangers we still face,” CFPB Acting Director…..

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Smaller property investors might be affected by Biden’s real estate tax plan

Real estate investors would experience a tax hike under President Joe Biden’s plan to help fund the $1.8 trillion American Families Plan. The American Families Plan allocates funds for childcare, paid family leave and education programs. The tax hike would happen because Biden’s plan removes a real estate investor’s right to defer taxes on property gains over $500,000. If this plan goes into effect, it will likely impact smaller property investors. The plan would put a stop to a strategy known as like-kind or 1031 exchanges — named for Section 1031 under the Internal Revenue Code — which allows investors…..

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Bill would give donor-advised funds charity deadlines

A bill introduced in the Senate would have the effect of moving more money out of donor-advised funds and private foundations and into working charities. For donor-advised funds, the bill, called the Accelerating Charitable Efforts Act or ACE Act, would establish deadlines for distributing money to charities. It would also tighten certain regulations for private foundations. Under current law, donor-advised funds do not have a minimum payout rate. These charitable accounts are created and funded by individuals to distribute to charities in the future. Donor-advised fund account holders receive a tax deduction when they put money into the fund. Opponents…..

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Working in retirement: financial considerations

For retirees who want to go back to work, there are some important financial considerations to keep in mind. An advisor can help you think through the implications for you. Consider these factors: Social Security benefits: If you return to work, it’s possible that your additional income could bring you over the annual earnings limit for Social Security. That means you could temporarily lose all or part of your benefits before you reach full retirement age. After you hit full retirement age, you can work without affecting your benefits. For someone who isn’t receiving Social Security yet, returning to work…..

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IRS makes change to crypto reporting

In the latest draft of IRS Form 1040, the agency has made a slight but essential change to the wording of the question related to virtual currency. On the 2019 and 2020 tax returns, the following question appeared: “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” The question led many people to wonder whether the IRS was trying to create a database of cryptocurrency investors, even if they had not sold their interests. It was also so broad that taxpayers and advisors found it tough to answer……

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Planning for high-net-worth families with possible tax law changes

If certain proposed changes to federal tax law pass, they could have a big effect on high-net-worth individuals and families. While it is unclear exactly what changes will go through, now is the time for people who might be affected to plan ahead. Currently, individuals can give up to $11.7 million in assets during life or at death without paying gift or estate taxes. Couples can give up to $23.4 million without paying these taxes. These exemption levels are the highest they have ever been. They are scheduled to sunset on Dec. 31, 2025, reverting to pre-2018 levels in 2026. The…..

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What to look for when buying an annuity

An annuity can be a useful tool for long-term care planning, but it is a complex financial product that can be hard to understand. If you are purchasing an annuity, you need to consider your options carefully. An annuity is a contract with an insurance company under which the consumer pays the company a certain amount of money and the company sends the consumer a monthly check for the rest of his or her life, or for a certain term. Annuities come in many flavors. They can be deferred (begin paying out at a later date) or immediate (begin paying…..

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Transferring Medicare and Medicaid plans when you move

If you plan to move, can you take your Medicare or Medicaid plans with you? The answer depends on whether you have original Medicare, Medicare Advantage or Medicaid. Medicare If you have original Medicare (Plans A and B), you can move anywhere in the country and still be covered. Medicare is run by the federal government, so it doesn’t matter what state you are in as long as your provider accepts Medicare. Your supplemental (Medigap) plan should also continue to cover you in your new home state, but your premiums may change. The exception is if you move to Massachusetts,…..

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