Gilbert Wealth Articles

The Sunset of the Tax Cuts and Jobs Act: What You Need to Know

NOTE - This article is no longer applicable due to the passing of the One Big Beautiful Bill in 2025. It is posted only for reference and historical context. I did say tax laws are written in pencil right?!As the saying goes, “tax laws are written in pencil”. Indeed, the landscape of taxation is in constant flux, necessitating an ongoing awareness and adaptability to change. As we approach the expiration date, I wanted to describe in more detail the changes that are being made. This is not a comprehensive list but does cover the changes that are most impactful.Authors Opinion: Before…
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Common Features of Traditional Long-Term Care Policies

Long-term care (LTC) policies are financial tools designed to cover expenses associated with long-term care services. These services are often necessary for individuals who are unable to perform basic activities of daily living (ADLs) due to chronic illness, disability, or cognitive impairment. Traditional long-term care insurance policies have several common features that are essential for potential policyholders to understand. This article provides an overview of features commonly found with Traditional Long-Term Care Policies. This list is not exhaustive and policies issued by companies may deviate from the descriptions provided. It is important to review your own policies for complete descriptions and…
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Protecting Yourself from Common Scams: Tips and Strategies

In an increasingly digital world, scams have become more sophisticated and prevalent. Understanding these schemes and learning how to protect yourself is crucial. This article outlines some of the most common scams that are used to de-fraud honest people of their hard-earned money. Here, we provide detailed descriptions of each scam and practical tips on how to safeguard yourself.General Tips to Protect Yourself from ScamsEducate Yourself: Stay informed about the latest scams and how they operate.Be Skeptical: If you receive unsolicited calls, emails, or messages, be very skeptical.Secure Personal Information: Protect your personal information online and offline.Use Strong Passwords: Create…
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IRC Section 121 and Its Application to a Rental Property Turned Primary Residence

Investing in real estate can provide significant financial benefits, including capital appreciation and rental income. However, the tax implications of selling a property that has been used both as a rental and as a primary residence can be complex. This article will explore how the Internal Revenue Code (IRC) Section 121 exclusion applies when a rental property is converted into a primary residence, focusing on a detailed case study to illustrate the key points.For more on the tax implications of selling rental properties, see Tax Implications of Selling a Rental Property – Gilbert Wealth What is the IRC Section 121 Exclusion?…
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Tax Implications of Selling a Rental Property

Selling a rental property can have significant tax implications, whether you realize a gain or incur a loss. This article will provide a detailed overview of the various tax considerations involved, including depreciation recapture, selling expenses, and passive loss carryforwards. Calculating Real Estate Gains or Losses When you sell a real estate property, or any investment for that matter, you will incur a capital gain or loss. Unless held in a tax-qualified account, the capital gain or loss goes into determining potential tax obligations you may have as a result of the sale. To determine the capital gain or loss on…
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Preparing for Long-Term Care: Statistics and Financial Insights

When planning for your financial future, determining how to address the potential for a long-term care event will be one of the hardest decisions to make. The topic is particularly complex given the uncertainty around whether or not you will even have a long-term event; and if you do, how long will it last, what will it cost, and when will it occur. The decision is complicated even further by the higher cost of insurance or the high cost of long-term care planning strategies.The purpose of this article is to educate on the prevalence of long-term care and provide context on…
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Basic Statistics and Other Finance Terms

A brief explanation of various statistics used in finance and how to understand them.[lwptoc] Average, Mean, Median Average (Generic Term)The term "average" is a generic term that refers to a central value of a dataset. It is most often used interchangeably with "mean," but in broader terms, it can also refer to other measures of central tendency, such as the median and mode.There are several types of averages that can be used in finance and each has its strengths.Mean (Arithmetic Mean)The mean is a type of average, often called the arithmetic mean. The Mean is most likely what most people…
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How Social Security Benefits are Taxed

After years of hard work and seeing that large deduction from your income called FICA (or SECA if you're self employed), you've finally made it to begin collecting your Social Security benefits. The checks start rolling in but then you notice something when you file your taxes. Your Social Security benefits are taxable! Is that right? Unfortunately, yes. A lesser-known aspect to those yet to claim is their potential taxability. Understanding how Social Security benefits are taxed can help beneficiaries manage their finances more effectively and avoid unexpected tax liabilities. This article will delve into the specifics of Social Security taxation, including…
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The Future of Social Security

Social Security benefits are one of the key sources of retirement income for most Americans so it can be quite disturbing to reach news headlines like:"Americans will lose full Social Security benefits in 11 years" - Business Insider"Social Security benefits may be cut by at least 20% in the next decade" - CNBCWhether you're currently claiming Social Security, are within striking distance of claiming, or have a few decades or more (that's me 🙋‍♂️) before claiming, it is important to understand what is happening with Social Security, why the alarm bells are being raised, what can be done about it,…
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Understanding Tax Implications for Investment Accounts

Understanding the different types of retirement accounts and their respective tax statuses is fundamental for effective financial planning and tax planning. This article offers a comprehensive overview of the four primary tax categories for different accounts each having distinct implications for investment growth and withdrawals.The reason understanding these terms is important as they impact how contributions, distributions, and earnings are taxed as well as other important considerations regarding the account.The four primary account tax categories are:Taxable AccountsTax Deferred AccountsTax-Free AccountsAfter-Tax Accounts  Taxable Accounts Contributions = Not Deductible Tax Deferred Growth = Depends Withdrawal Taxation = Gains Withdrawal Flexibility = Most…
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