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Clay Schmidt

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Where Do I Put My REIT Income on a Tax Return?

Real estate investment trusts are one way investors can own interests in commercial real estate without having to navigate the common management and operational issues that are associated with direct property ownership.

Posted by Clay Schmidt on Oct 14, 2021

Topic: Tax

What Is a Section 1411 Adjustment and How Does it Work?

The income you make from passive investments on your trust or estate, minus any accrued expenses, is your Net Investment Income (NII). This number is added into your Adjusted Gross Income (AGI) and determines how you are taxed according to Section 1411 when tax season rolls around.

Posted by Clay Schmidt on Oct 9, 2021

Can You Claim a Section 179 Deduction on Rental Property?

Owning and managing rental property is challenging for any business owner. Whether you have a large or small portfolio, you have a lot to keep up with, including staying abreast of the changing rules on business deductions. It’s always wise to seek expert financial and tax advice to ensure you take everything you should, but not more.

Posted by Clay Schmidt on Oct 4, 2021

How Does a 1031 Exchange Affect the Buyer?

A 1031 exchange allows real estate investors to sell one property and roll those proceeds into a like-kind replacement asset. By doing this, investors can defer tax liabilities indefinitely so long as they keep reinvesting capital back into real property.

Posted by Clay Schmidt on Sep 28, 2021

Topic: 1031 Exchange

What Is the Biggest Tax Shelter for Most Taxpayers?

Nobody likes giving up too much income to Uncle Sam in the form of taxes. To reduce tax liabilities, taxpayers seek out tax shelters. A tax shelter reduces taxable income, which results in a lower tax bill. 

Posted by Clay Schmidt on Sep 20, 2021

Topic: Tax

What Are Three Methods of Depreciation?

We’re going to review the three most popular depreciation methods. Selecting an efficient depreciation method can result in taxation that better aligns with a company’s ability to generate revenue. Of course, you’ll want to speak with your tax adviser before deciding on any of these methods.

Posted by Clay Schmidt on Sep 15, 2021

Topic: Tax

Strategies for Deferring and Reducing Capital Gains [Webinar Recap]

Enacted in 1921, IRC 1031 allows investors to defer all federal and state capital gains and depreciation recapture taxes when selling property by reinvesting, or “exchanging” their equity into a “like-kind” replacement property. Investors can use this strategy in hopes of building wealth on a tax-deferred basis by reinvesting 100% of that equity.

Posted by Clay Schmidt on Sep 10, 2021

Topic: Capital Gains

1031 Exchange Alternatives to Consider

Investing in real estate can be complicated, especially when it comes to selling your investment property. Taxes can take a big chunk out of your proceeds, but there are ways you can shelter your gains. One popular method used by investors to defer capital gains is the 1031 “like-kind” exchange; however, there are alternative methods to consider. 

Posted by Clay Schmidt on Sep 4, 2021

Topic: 1031 Exchange

Can a State Change its Opportunity Zone Designation?

This is a loaded question since there are a few questions being asked. First, can an opportunity zone (OZ) change its entire designation, and then can it change only parts of it? Let's dig deeper into what these questions mean, if they are possible, and finally, how to go about implementing the changes.

Posted by Clay Schmidt on Aug 30, 2021

How Long Do I Have to Do a Reverse 1031 Exchange?

A reverse 1031 exchange differs from a standard 1031 exchange in that you can purchase a replacement property before relinquishing your original asset. There is a set amount of time for both identifying the original asset to be sold and to close the sale. 

Posted by Clay Schmidt on Aug 23, 2021

Topic: 1031 Exchange

Another Way To Own Investment Properties

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