Colton’s Recent Posts

How To Minimize Capital Gains Tax

How to Minimize Capital Gains Tax

There can be significant advantages to owning investment real estate, including reducing taxable income with business expenses, depreciation, and amortization. Unfortunately, what the IRS gives, it also eventually takes back. In this article, we’ll discuss capital gains tax, how to calculate potential capital gains tax liability, and ways commercial real estate investors can minimize the impact of tax on capital gains.

Mar 11, 2023

Does an Estate Pay Taxes on the Sale of a Home?

Inheriting a home after someone close to you dies can bring significant financial benefits, but it also may come with tax liabilities if you sell the home after receiving it as part of the decedent’s estate.

Mar 9, 2023

What is Pari-Passu?

Pari passu is a term used in some industries that means that the parties or assets in a financial transaction are treated equally. It stems from the Latin meaning of pari passu, “with equal steps,” or “on equal footing.” The parties might include creditors, business partners, securities, or investors. 

Feb 25, 2023

Direct Or Fractional Real Estate Investments: Which Offers Greater Potential Profits?

Real estate is historically a robust long-term investment. In the US, homeownership is an elevated goal for many people. For some, extending that pursuit to add additional property becomes the foundation of their wealth accumulation strategy. And it's no wonder since buying and holding real estate can be a path to success.

Feb 17, 2023

Does a Delaware Statutory Trust File a Tax Return?

Investors who 1031 exchange into Delaware Statutory Trusts (DSTs) may wonder how to address their annual tax reporting requirements from this type of investment vehicle. 

Feb 13, 2023

Are Trust Funds Taxed?

A trust fund is set up like a traditional trust, but how it operates can be a little different. However, some trust funds look and operate like a living trust (or irrevocable trust). What does that mean when it comes to trust funds and taxes? Are they taxed like a living trust or an irrevocable trust?

Feb 9, 2023

Is Social Security Taxed as Ordinary Income?

Social Security is the short name for the federal program officially called the Old-Age and Survivors Insurance and Disability Insurance program. This retirement program started in 1935 with the passage of enabling legislation and began paying benefits to retirees in 1940. Employees and employers contribute to the fund, each paying 6.2 percent of wages on amounts up to a maximum of $160,200 in 2023, with increases in the maximum adjusted periodically. In addition, self-employed individuals pay both the employee and employer tax, for a combined 12.4 percent.

Feb 5, 2023

Can Rental Depreciation Offset Ordinary Income?

Real estate investors benefit from the tax shelter that real estate depreciation provides. Best of all, depreciation is a non-cash flow expense since it doesn’t impact an investor’s bank account. Some investors will have a large depreciation expense during a year, which can create an overall loss for their rental property. When that happens, can the loss be used to offset ordinary income?

Feb 1, 2023

What is a Financial Power of Attorney?

Power of attorney is a legal instrument that allows another person to act on behalf of the individual who granted the power to them. While each state has specific rules governing the designation, in most cases, you can confer it on your selected agent by completing a legal, notarized form. While the documents must be notarized, usually, an attorney is not a necessary part of the process.  

Jan 28, 2023

What is IRC Section 1400Z-2 Gain?

The Qualified Opportunity Zone Program was introduced under the Tax Cuts and Jobs Act of 2017. The focus is to funnel capital gains toward federally designated Qualified Opportunity Zones (QOZs) by way of Qualified Opportunity Funds (QOFs). Investors, in turn, benefit from tax incentives which encourage them to invest in QOFs.

Jan 23, 2023

Download The Capital Gains Tax Calculator

Cap Gains Calculator For Investors
Download Calculator