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taxation

A collection of 7 issues

What Is the Cost Basis of Inherited Assets?

Introduction: Why Cost Basis Matters for Inherited Assets When you inherit property—whether it is a family home, a portfolio of stocks, or a piece of artwork—your tax obligations hinge on one crucial figure: the cost basis. The cost basis represents the asset’s starting value for tax purposes

Cryptocurrency Taxes: Basics Every Beginner Should Know

Introduction Cryptocurrency trading and investing have moved from fringe hobby to mainstream finance, and tax authorities around the world have taken notice. In most jurisdictions, digital assets like Bitcoin, Ether, and stablecoins are treated as property rather than currency, which means every transfer can trigger a taxable event. Failing to

What Is a Qualified Dividend? Definition, Requirements & Tax Benefits

What Are Qualified Dividends? Qualified dividends give investors a tax-efficient stream of income from stocks. Because they are taxed at long-term capital-gains rates instead of ordinary income rates, the IRS lets many shareholders keep more of every payout. Learning what qualifies helps you build an income-focused portfolio that grows faster

Understanding Phantom Income: What It Is and How to Manage It

What Is Phantom Income? Phantom income is money that appears on your tax return even though you never actually received it in cash. This mysterious form of profit often surprises investors, partners, and employees, because it inflates taxable income without corresponding liquidity. Understanding how phantom income arises is essential to

Understanding the Laffer Curve: How Tax Rates Influence Revenue

The Laffer Curve Explained The Laffer Curve is an economic theory illustrating the relationship between tax rates and government revenue. Named after economist Arthur Laffer, the curve suggests that beyond a certain point higher tax rates discourage work, investment, and production, ultimately shrinking the tax base and reducing total revenue.

Fiscal Policy: Definition, Tools, and Impact on the Economy

What Is Fiscal Policy? Fiscal policy steers growth, prices, and employment through deliberate changes in government spending and taxation. Whether you’re a policymaker, investor, or citizen, understanding how fiscal levers work helps you anticipate economic tides before they reach your doorstep. Expansionary vs. Contractionary Policy At its core, fiscal

Depreciation Recapture: What Investors Need to Know for Tax Season

What Is Depreciation Recapture? Depreciation recapture is a tax provision that requires investors to repay a portion of the depreciation deductions they previously claimed when they sell a depreciable asset, such as rental real estate or business equipment, for a profit. While depreciation lowers taxable income during the holding period,