Realized Blog

Brett Kimbro

Recent Posts

Can You Tax Loss Harvest in an IRA?

Tax loss harvesting is a tax-advantaged strategy available to investors. It applies to securities and other assets. Basically, tax loss harvesting offsets gains with losses. But can it be applied to an IRA?

Posted by Brett Kimbro on Jan 14, 2022

Topic: Tax

Can You Purchase a 1031 Exchange Property with Seller Refinancing?

Seller Refinancing and 1031 Exchanges

The 26 U.S. Code § 1031 is relatively straightforward. Identified as “Exchange of Real Property Held for Productive Use or Investment,” the process focuses on disposing of an owned piece of real estate (i.e., the "relinquished property) and swapping the proceeds into another real estate asset (i.e., the “replacement” property). 

Posted by Brett Kimbro on Jan 10, 2022

Topic: 1031 Exchange

Is it Possible to Decrease Tax Liability After Several 1031 Exchanges?

According to Benjamin Franklin, the only thing certain is death and taxes. And, when it comes to owning real estate as an investment, taxes are definitely certain. In addition to property taxes and taxes on earned income, capital gains taxes must be paid when the asset is sold (assuming, of course, that it is sold at a profit).

Posted by Brett Kimbro on Jan 5, 2022

Topic: 1031 Exchange

How Does Section 1411 Define An Active Partnership Interest?

Internal Revenue Code Section 1411, which became effective for tax years beginning January 1, 2013, was added to tax law as part of the Health Care and Education Reconciliation Act of 2010, to increase revenue. Called the Net Investment Income Tax, it is imposed on individuals, trusts, and estates, levying a tax at the rate of 3.8 percent on investment income above specific threshold amounts.

Posted by Brett Kimbro on Jan 1, 2022

Is Property Transfer Tax Deductible?

A property transfer tax is a tax on the transfer of property. The transfer transaction is similar to a buy/sell transaction in that property changes ownership. There is still a closing, potentially a real estate agent, fees, and the title. But unlike a buy/sell transaction, there are no funds involved to purchase the property.

Posted by Brett Kimbro on Dec 28, 2021

Topic: Tax

Can I Deduct Supplemental Property Tax?

Whether you own your own home (and use it as a primary residence) or have possession of investment properties, you understand one thing. Namely, state and local property taxes can generally be deducted from your federal income taxes. While the Tax Cuts and Jobs Act of 2017 caps those deductions at $10,000 (or $5,000 if you are married and filing separately), the deductions can be used to help offset income. The result is a potentially lower tax burden.

Posted by Brett Kimbro on Dec 23, 2021

Topic: Tax

What Is Improvement Value in Commercial Real Estate?

A property’s assessed value is calculated for tax purposes and is comprised of improvement value and land value. When speaking of improvement value in commercial real estate, improvements include all accessible buildings and structures on that land, not necessarily that there have been recent improvements made to that property. 

Posted by Brett Kimbro on Dec 20, 2021

What Is an Involuntary Conversion?

While real estate investing can offer the potential to increase personal net worth through passive income, it is important to note that no asset class doesn’t come without its own set of potential risks. Yes, there will always be a need for residential housing or commercial facilities, but there are still bumps in the road in the world of real estate investing. One such example is found in involuntary conversions, which can force investors to significantly alter their investment. Understanding what involuntary conversions are and the dangers they present is important when making informed decisions about your own investing.

Posted by Brett Kimbro on Dec 16, 2021

How Are REIT Dividends Paid?

A Real Estate Investment Trust (REIT) is a company structured to own or finance real estate projects that seek to generate income. Due to many being available on traditional stock exchanges, REITs are an investment vehicle attainable for the average investor.

Posted by Brett Kimbro on Dec 10, 2021

How Much Does Real Estate Appreciate Per Year?

Real estate investors are motivated by various goals, including wealth accumulation, tax management, and pride of ownership, among others. Certainly, many hope that the property they buy will appreciate in value. Appreciation of an asset is an increase in value over time. Whether it occurs, how fast, and how much depends on external factors like supply and demand. While appreciation is typically viewed as a positive outcome, investors should prepare for it since if they sell appreciated property, they may owe taxes on the capital gain that the increase in value represents. Savvy investors should employ strategies to mitigate the impact of this circumstance by seeking professional financial and tax advice.

Posted by Brett Kimbro on Dec 5, 2021

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