Colton’s Recent Posts

Can You Invest in an Opportunity Zone Without Capital Gains?

Can You Invest in an Opportunity Zone Without Capital Gains?

Qualified Opportunity Zone (QOZ) investments are complex, and investors considering participation should carefully investigate their options. The intention of the program, which originated with the Tax Cuts and Jobs Act of 2017, is to increase investment in lower-income areas by encouraging reinvestment of capital gains into federally designated Qualified Opportunity Zones.

Nov 20, 2022

Is Capital Gains Based on Sales Price or Profit?

Is Capital Gains Based on Sales Price or Profit?

Capital gains taxes are assessments levied on the gain from selling capital assets. The amount subject to tax is the difference between the adjusted basis and the sales price. For example, suppose you buy stock for $100 and sell it for $200. If you paid a $5 commission when you purchased it, you add that cost into the adjusted basis, and the net capital gain is $95.

Nov 15, 2022

What is Capital Gains Yield?

What is Capital Gains Yield?

Investors can use a variety of methods to determine the profitability of their investments. 

Nov 10, 2022

Are Non-Profits Exempt From Capital Gains Tax?

Are Non-Profits Exempt From Capital Gains Tax?

When a corporation is granted and maintains tax-exempt status, it doesn’t have to pay taxes on any profits. But does that hold true if a profit comes from capital gains on an investment? We’ll explain non-profits and capital gains taxes.  

Nov 5, 2022

How Long Can Capital Gains be Carried Forward?

How Long Can Capital Gains be Carried Forward?

The IRS offers a variety of instructions concerning gains or losses resulting from the sale of capital assets. These include capital gains tax rates, short-term versus long-term capital gains, and carry forwards/carry overs.  

Oct 31, 2022

Who Pays Capital Gains Tax on a Deceased Estate?

Who Pays Capital Gains Tax on a Deceased Estate?

A critical goal for many investors is to preserve and enhance the value of the assets they can distribute to their heirs. When a person dies, their assets typically enter probate for distribution. The asset's value is determined before disposition during the probate process. That's one reason why the step-up provision of capital gains taxation is an integral aspect of estate planning.

Oct 27, 2022

What is a K-1 Form For a Trust?

What is a K-1 Form For a Trust?

Paperwork and forms are part and parcel when it comes to filing taxes. There is the Form 1099 series, which reports various types of income and earnings. There is the Form 1040, which lists everything the IRS needs to know about income, losses, deductions, and other information. 

Oct 23, 2022

How Much Do Property Managers Charge?

How Much Do Property Managers Charge?

If you've recently invested in a rental property and want to hire a property manager to collect rents, screen tenants, and handle maintenance requests, knowing how much property managers charge should help you avoid overpaying. Keep in mind, however, that the answer to this question depends on the property manager or management firm you hire as well as the tasks they are being hired to perform. Here's a more detailed guide on how much property managers typically charge.  

Oct 15, 2022

How Does Property Management for Tenants in Common (TIC) Investment Properties Work?

How Does Property Management for Tenants in Common (TIC) Investment Properties Work?

Tenancy in Common (TIC) can be an attractive method for investors to collaborate on the ownership of real estate assets. The structure can accommodate groups ranging in size from two to 35. Each owner holds an undivided fractional share of the assets, but the percentages can be and often are unequal. For example, a TIC group could consist of two friends, each holding fifty percent of the property. On the other hand, if there are ten owners, one could have fifty percent while the remaining nine split the other half.

Oct 10, 2022

What is a Capital Improvement?

What is a Capital Improvement?

If you have direct ownership of a property used for business or investment, there could come a time when you might want to make a change to it. You might want to add an addition or refloor the asset. These are activities that fall under the category of capital improvement.  

Oct 6, 2022