If I sell a co-op in New Jersey, can I do a 1031 exchange?
Updated Jan 27, 2021; Owner
A. A 1031 exchange can allow you to defer taxes when you sell a rental or investment property if you buy a substantially similar property.
The Tax Cuts & Jobs Act of 2018 implemented many changes to the 1031 exchange arena, said Steven Gallo, a certified public accountant and personal financial specialist with U.S. Financial Services in Fairfield.
The most important change is that it eliminated personal property exchanges from eligibility.
“This change brought rise to the question of whether co-ops would qualify under the new provisions since when purchasing a co-op, an individual is purchasing shares of stock in an entity that owns the real estate,” Gallo said.
Should I convert my IRA to a Roth to qualify for N.J. benefits?
Updated Feb 11, 2021;
Q. I’m now almost 68, and based on my retirement savings in IRAs and 403(b) accounts, I think my Required Minimum Distributions (RMDs) will be almost $100,000 per year once they start. I intend to keep working part-time so my income will exceed this, plus I have Social Security. Eligibility for benefits like the Senior Freeze and pension exclusion, plus the cost of Medicare, would be affected by this. Does it make sense for me to convert a large amount to a Roth IRA now? In this year, I would lose eligibility for those benefits but then once the RMDs kick in, I would stay under the income threshold. Or is it crazy to incur a huge tax bill now?
Why did I lose my disability payments when Social Security started?
Updated Dec 29, 2020;
Q. I just turned 66 in October. In 2017, I became disabled and started receiving disability payments. But in October, I had my disability taken away from me. Can you tell me why I lost my disability because I am still disabled? Confused
A. Let’s go over the different kinds of benefits one may qualify for.
Those who are disabled may qualify for two different benefits which are overseen by the Social Security Administration (SSA), said Claudia Mott, a certified financial planner with Epona Financial Solutions in Basking Ridge.