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What Is The Difference Between Passive And Non-Passive Rental Income?

The complex world of real estate taxation contains hidden opportunities that could dramatically impact your bottom line—if you know where to look. Brian Moss, a senior tax associate with MP CPAs who recently passed all four parts of his CPA exam, breaks down the critical distinction between passive and non-passive rental income classification that every property owner needs to understand.

Most property owners don't realize that rental income defaults to passive status, severely limiting how losses can offset other income sources. Brian walks us through exactly what it takes to potentially reclassify your rental activities as non-passive, unlocking significant tax advantages. He details the dual requirements of material participation (requiring regular, continuous involvement) and real estate professional status (demanding more than 50% of your personal services and 750+ annual hours in real property businesses).

Whether you're a seasoned real estate investor or considering your first property purchase, this episode delivers actionable insights that could potentially save you thousands in taxes through proper planning and documentation.

To learn more about MP CPAs visit:
https://thempgroupcpa.com/
MP CPAs
413-739-1800

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What is The SECURE Act 2.0?

Retirement planning is undergoing a seismic shift with the implementation of SECURE Act 2.0, and your financial future depends on understanding these critical changes. Melissa English, Audit Director with over 23 years of experience at MP CPAs, walks us through the five major changes hitting retirement plans in 2025 that will transform how Americans save for retirement.

The biggest revelation? Starting in January 2025, eligible employees must be automatically enrolled in retirement plans at 3-10% of their salary with annual increases—unless they actively opt out. This mandatory change aims to boost participation rates but comes with specific exceptions for certain businesses. We also explore super catch-up contributions, allowing those aged 60-63 to contribute an additional $3,750 beyond standard limits, and how long-term part-time employees will qualify for plans after just two years instead of three.

Whether you're a plan sponsor with fiduciary responsibilities or an individual preparing for retirement, this episode delivers actionable insights to optimize your financial strategy!

To learn more about MP CPAs visit:
https://thempgroupcpa.com/
MP CPAs
413-739-1800

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What Are The Different Types Of Stock Compensation, And How Can Employees Maximize The Benefits While Navigating The Tax Implications And Potential Risks?

Discover how understanding the intricate world of incentive stock options, non-qualified stock options, restricted stock units, and employee stock purchase plans can make a significant impact on your financial future. Matt Baran, tax manager at MP CPAs, walks us through crucial dates like grant, vesting, and exercise, making the complex timeline of stock compensation much clearer. We delve into the tax advantages of incentive stock options, including how they interact with the alternative minimum tax and capital gains rates, and unravel the straightforward tax treatment of RSUs.

We explore the strategic art of accelerating income with the 83(b) election, a tool that may reduce your tax burden when leveraged effectively. Matt emphasizes the importance of weighing tax implications and non-tax considerations, such as company performance and portfolio diversification when making stock compensation decisions. Expert advice from Matt encourages listeners to consult with a tax advisor to navigate these challenging waters. Tune in for an episode packed with actionable insights to optimize your stock compensation strategy and secure your financial future.

To learn more about MP CPAs visit:
https://thempgroupcpa.com/
MP CPAs
413-739-1800