If you’re looking at properties, you may notice some houses and condos for sale have HOA fees in their listings. You might be wondering if HOA fees are mandatory, how often they need to be paid, what the fees cover, and if you can deduct HOA fees from your taxes. HOA payments are an added cost that needs to be considered when making your monthly housing budget.
The efficient frontier is a concept in finance that can help you identify a potential portfolio for any given return requirement and level of risk.
Topic: Real Estate Investing
Considering a 1031 exchange from a single-family investment property into multi-family? If you set up the exchange correctly and complete the transaction within the strict timeline, it’s possible.
What Is the NIIT?
The Net Income Investment Tax was imposed beginning in 2013 to help fund the Affordable Care Act. The NIIT is contained in Section 1411 of the Internal Revenue Code and applies a tax rate of 3.8 percent to the net investment income of individuals, estates, and trusts that have income above specific thresholds. It applies to income from these sources:
To consider the potential profitability of a real estate investment, there is a calculation called the net operating income (NOI). The calculation is done by taking the revenue earned from the real estate investment minus any operating expenses.
If you bring in income that doesn’t automatically have taxes withheld, you are expected to pay estimated taxes to the IRS each quarter. If you don’t, you will face penalty fines.
A Qualified Intermediary or QI is a key participant in a 1031 exchange and is critical to the successful outcome of the transaction. Sometimes referred to as a 1031 Exchange Accommodator, the QI is responsible for the following actions:
Topic: Qualified Intermediaries
Prior to 1991, in a 1031 tax-deferred exchange, a seller would deed a property to an intermediary who then deeded the property to a third-party buyer, known as sequential deeding. Now, there is the option for the seller to deed to property directly to the buyer, known as direct deeding.