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Taxes and your trusts

You may have joined other Oregon residents during 2018 and created an estate plan that included a trust. Depending on your needs, you created either a revocable or an irrevocable trust. A revocable trust allows you to make modifications and changes to it during your lifetime. For this reason, the IRS considers you the legal owner of the assets transferred into the trust.

If you created an irrevocable trust, you surrendered all ownership of the assets transferred into it. As an aside, your revocable trust may become irrevocable after your death. In any case, the tax treatment of each type of trust is different. Knowing the rules could help you stay out of trouble with the IRS.

Now is the time to start gathering tax-related information

Though the holiday season is a time of year many Oregon residents enjoy, it is quickly followed by a season that many people dread: tax season. Thinking about your taxes can understandably cause you to feel stressed, but you may also look forward to the possibility of obtaining a tax refund that could give you some extra cash for expenses or enjoyable activities.

Whether you are someone who likes to file your taxes early or who tends to wait until the last minute, it is wise to prepare ahead of time. Having several documents on hand in advance could help you have all the needed information to correctly file your taxes when you choose to do so.

Your retirement accounts are not protected from an IRS levy

No one wants to fall on hard financial times, but this type of situation affects a considerable number of individuals and can happen suddenly. You may find yourself having to contend with any number of financial difficulties that result in an inability to meet certain monetary obligations. In particular, you may not have the ability to pay your taxes.

In a last-ditch effort to avoid having to pay money to the Internal Revenue Service, you may not have filed your tax return at all, or you may have simply not made payments on any taxes that you owe. Unfortunately, ignoring such a problem will not make it go away. In fact, it could make matter worse as the IRS could seize money from your retirement account.

Avoiding mistakes that can cost you on Tax Day

Most people don't like to think about their taxes until April, and that can result in making many costly mistakes. Your taxes affect you every day, so being mindful of how the government claims its share of your money is a good way to ensure you are getting the most from your earnings.

With only a short time before the end of the 2018 tax year, you may want to take a closer look at some of the mistakes you may be falling into that could cost you dearly on your tax returns. In fact, you may decide that having a professional review your taxes helps you find more ways to minimize your tax ramifications.

Do you need to pay taxes on rental property income?

Having rental property is a common way for many people to generate additional income. You may find yourself interested in this type of venture due to recently inheriting property or due to purchasing property specifically as a rental. While excited about your new income avenue, you likely also know that acting as a rental property owner and landlord will involve a considerable amount of work.

In addition to making sure your tenants stay happy with the property, you also have financial obligations relating to your rental income. While it may seem like more of a passive way to earn extra money as opposed to another full-time job you may have, you still need to take care of paying taxes on the rent payments you receive.

Are you ready to work for yourself and pay estimated taxes?

Until recently, you may not have considered the idea of being self-employed as a viable possibility. You could have had many reasons that you put off acting as your own boss, and having to handle various financial aspects on your own may have been one of those reasons. True, as a self-employed person, you will need to take different considerations for your taxes into account than if you worked for someone else.

In particular, as a self-employed person, you do not have an employer to withhold your taxes every paycheck. While this may seem ideal at first because you receive payment in full rather than having taxes deducted, you could hurt yourself financially if you do not pay your estimated taxes.

How will the IRS consider your LLC come tax time?

When you started your own company, you undoubtedly conducted a thorough review of the possible business entities you could have created. In the end, you chose a limited liability company for many reasons. Of course, you may still have concerns over doing your taxes in association with your company.

Just as with any other job you held, taxes play a major role in the running of your business and any profits you make. If you recently started your business, you may have not had to file your taxes in relation to the business as of yet. Still, you do not want to find yourself scrambling when tax time rolls around, and having the information ahead of time could prove immensely useful.

Here's a look at some of the upcoming tax changes

You may have heard that the Tax Cuts and Jobs Act takes effect on Jan. 1, 2019. One of the most talked about portions of the new tax law has been regarding the elimination of the alimony tax deduction. However, there is much more happening than just that.

Since this is the first major tax revision in decades, many people could find themselves confused about what they face at tax time. If you are one of those people, then it may help to have some general information about some of the upcoming changes.

Gig work requires careful budgeting and tax prep

Gig worker is the new name for freelancer. No matter what you call yourself, you and many in California enjoy the freedom and flexibility of the job classification. The work you do is an important part of the economy. Whether you freelance as a writer, designer, artist, IT support or other industry, you allow business owners and others to operate with a low overhead.

However, the advantage you provide for your employers may be exactly the drawbacks to your job. You have no health insurance or other benefits, no steady income and no real security. Your employer likely does not deduct taxes from your check either. Among the many challenges you face as a freelancer is the preparation of your taxes.

Are you in charge of filing the taxes of a deceased loved one?

Filing your own taxes can have its complications. Even if you know all of your financial information, you may still struggle to know the right way to file. Therefore, when you find yourself in charge of handling the taxes of a recently deceased loved one, you may have even more concerns about the proper steps to take.

In order to complete this endeavor, you will need to have the right information and fill out the correct forms, just as you would with your own return. Of course, since you are dealing with someone else's information and with the fact that the individual has died, you could face more complexities than you would with just filing your own personal tax return.

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