Eric Dostal

J.D., CFP®
Personal Finance, Retirement, Taxes
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“Eric Dostal is an Advisor at Sontag Advisory an independent registered investment advisory firm that serves clients in over 30 states and acts as a wealth manager, investment adviser, consultant, and fiduciary.”
Firm:

Sontag Advisory

Job Title:

Advisor

Biography:

A believer in continuing professional development, Eric Dostal obtained the CERTIFIED FINANCIAL PLANNER™ Professional (CFP®) designation, and graduated with a JD from St. John’s University School of Law. Eric recognizes the challenges investors face when planning their retirement and therefore he helps clients retire when and how they would like. Eric focuses primarily on providing affluent and high net worth individuals with expert, comprehensive and impartial financial planning advice to help those individuals achieve their unique life goals.

After joining Sontag Advisory in 2013, Eric has worked extensively with clients over the past 4+ years to create and implement their unique financial plans. Eric has demonstrated a high degree of skill developing and overseeing the investment, insurance, retirement, tax and estate planning strategies of his clients.

Eric currently lives in Merrick, New York with his wife Jamie and daughter Madeline. When not in the office, you can often find him spending time with family and friends. He also recharges by sitting down with a good book and honing his culinary skills.

Education:

JD, St. John's University School of Law
B.A. - History, SUNY Geneseo

Fee Structure:

Fee only

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  • Eric Dostal
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July 2016
    Financial Planning, Investing, Retirement Savings
April 2017
    Debt, Real Estate, Tax Deductions / Credits
July 2017
    Investing, Personal Finance, Starting Out
April 2017
    Estate Planning
March 2017
    College Tuition, IRAs

All Answers
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    Annuities, Real Estate, Taxes
How do you deduct mortgage interest from your taxes?
50% of people found this answer helpful

The IRS divides loans into three categories based on their term: short (less than 3 years), mid (3-9 years), and long (more than 9 years). An “applicable federal rate” or AFR is published each month, by the IRS, setting the interest rate for each of the three durations. For example, the Long-Term AFR rate is 2.6% for November 2017, which is the minimum amount of interest you could charge for a loan with a term longer than 9 years.

The income tax consequences of an intra-family loan depend on who the lender and borrower are. If both the lender and borrower are individuals, as opposed to a trust or corporation, then the interest on the loan is income to the lender and must be reported on his or her income tax return. It sounds like you may be trying to lend the funds from a Roth IRA as an “investment” to avoid recognizing the interest payments as income. This may prove to be difficult to do because you are loaning funds to a family member which may run afoul of rules promulgated for permitted investments for Roth IRAs.

For a loat to be considered an intra-family mortgage, then the transaction must be properly recorded and documented in order to ensure deductibility of the interest payments made from the borrower to the lender. This is a common consideration when a family member wishes to provide funding for the purchase of a new home. There may be costs associated with drafting and then recording a mortgage with the county where the property is located. However, these steps are esential to allow for deductiblity of mortage interest. It is important to run an analysis to determine if the anticipated interest rate deduction from the mortgage will overcome the hurdle of paying the expenses associated with the mortgage recording. Typically, it does not given the low interest rate enviorment we find ourselves in. 

An inter-family loan must be appropriately documented, by the creation of a promissory note, and payments must be made according to the note’s schedule. Failure to properly document the loan, and abide by its terms, may result in the loan being considered a gift by the IRS, which may have adverse Estate and Gift tax consequences depending on your situation.

The lender could be taking on substantial risk if the loan represents a large portion of their overall net worth. There is a chance that the borrower may default on their loan obligation and the lender needs to think about what would happen to them if this were to occur.  

October 2017
    Insurance, Life Insurance
What type of life insurance policy should I buy?
67% of people found this answer helpful
September 2017
    Estate Planning, Real Estate, Taxes
What are the taxes on a trust account property?
50% of people found this answer helpful
September 2017
    Taxes
What is the best way for me to give my son $28K?
0% of people found this answer helpful
August 2017
    Taxes
What is the most u can gift a person without any tax issues?
August 2017