Why Tax Basis Is So Important

Why Tax Basis Is So Important

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For tax purposes, the term “basis” refers to the original monetary value that is used to measure a gain or loss. For instance, if you purchase shares of a stock for $1,000, your basis in that stock is $1,000; if you then sell those shares…
Gift and Estate Tax Primer

Gift and Estate Tax Primer

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The tax code places limits on the amounts that individuals can gift to others (as money or property) without paying taxes. This is meant to keep individuals from using gifts to avoid the estate tax that is imposed upon inherited assets. This…
Tax Treatment of a Room Rental

Tax Treatment of a Room Rental

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With the shortage of affordable housing these days, many homeowners are renting out rooms in their homes, providing themselves with some additional cash. Questions that are often raised in regard to room rentals include: Is the income taxable?…