The U.S. Department of the Treasury and the IRS have recently introduced a plan to eliminate a significant tax loophole that has been utilized by large, complex partnerships. This loophole, known as “related party basis shifting,” involves trading original purchase prices on assets between different legal entities to manipulate deductions and reduce future gains. The
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In recent years, car payments have seen a significant surge due to a combination of factors such as high vehicle prices and soaring interest rates. According to data from Moody’s Analytics, the average monthly car payment for customers reached $760 in May. This figure represents a 40% increase from the $535 average payment back in
The recent decision by the Federal Reserve to keep rates steady has signaled that there will likely be only one rate cut before the end of the year. This poses a challenge for consumers carrying credit card balances as they may not see much relief from the high interest charges. With the average credit card
Arkansas Attorney General Tim Griffin’s personal experience of repaying his $100,000 student loan balance over 30 years sheds light on the controversial topic of student loan forgiveness. Griffin has been vocal about his opposition to blanket student loan forgiveness, arguing that it is unfair for responsible borrowers like himself to have their tax dollars cover
When it comes to assessing your retirement readiness, many people turn to comparing their 401(k) balances to those of others to see if they are on the right track. Recent data from Fidelity reveals that the average 401(k) balance for investors on their platform was $125,900 in the first quarter. However, looking at age breakdowns,
Gen Z has been making waves in the world of investing by getting an early start with their financial future. According to the 2024 Schwab Modern Wealth survey, Gen Z adults are beginning to invest and save at an average age of 19. This puts them well ahead of baby boomers, who typically started investing
As we approach the second-quarter estimated tax deadline for 2024 on June 17, it is essential to remember the significance of making timely payments to avoid penalties imposed by the IRS. These payments are typically required for individuals with income sources that do not have withholdings, such as contract jobs, freelancing, gig economy work, or
The real estate market is experiencing a shift as more homeowners are listing their homes for sale, but properties are taking longer to sell due to high prices and interest rates. New listings from home sellers increased by 13% in May compared to a year ago, according to a report by Zillow. However, despite the
The ongoing debate in Congress on the topic of trillions in expiring tax breaks has brought to light several Democratic proposals for increasing taxes on corporations and wealthy individuals. Advocates of these plans argue that higher taxes on the rich are necessary to address income inequality and the growing federal budget deficit. One of the
Recently, the U.S. Treasury Department and Internal Revenue Service announced that the federal government has issued over $1 billion in tax credits as an upfront cash incentive to buyers of electric vehicles. Under the Inflation Reduction Act, approved tax credits for new and used Electric Vehicles (EVs) can now be delivered by car dealers at