Grace’s Recent Posts
What is an Example of an Installment Sale?
Completing a 1031 exchange is a common way for real estate investors to defer capital gains tax liabilities on the sale of investment properties.
Are Distributions from a Qualified Opportunity Fund Taxable?
While qualified opportunity funds (QOFs) offer a number of tax benefits, investors understandably have reason to be concerned about the tax implications of distributions from these funds. In this article, we’ll take a closer look at whether distributions from a QOF are taxable and how specifically they are taxed.
What is a Related Party Exchange?
As we’ve mentioned in numerous blogs, 1031 exchanges come with many rules and regulations. These include in-stone deadlines, the value of relinquished and replacement properties, and eligible properties.
How to Avoid Capital Gains Tax When Selling Farmland
Accountants and finance professionals view farmland differently than other capital assets. For example, a retail strip center and undeveloped farmland are both real estate. But their purposes and uses can differ.
Should I Change My Investment Strategy When Inflation Increases?
Stock market investing is often described as long-term, not to be disrupted in reaction to short-term economic influences. A traditional investing strategy supports crafting a mix of stocks and bonds (or similar fixed-income investments) designed with consideration to your risk appetite and then left alone. combining potential for growth with stability, you may want to develop a 60/40 portfolio. That means you have sixty percent of your stock holdings and the balance in fixed-income instruments like bonds. The foundational hypothesis for the 60/40 portfolio is that the stocks will appreciate while the bonds reduce volatility to help manage short-term losses.
Can a Joint Tenant Force the Sale of a Property?
One of the common ways for people to hold title to property as a group is to buy it as joint tenants. In many states, joint tenancy is frequently employed by married couples and by business partners investing together. Joint tenants have equal ownership rights and responsibilities. A critical provision of joint tenancy is the right of survivorship—when one owner dies, the others inherit the deceased partner’s share. If there is more than one survivor, all would equally share the portion owned by the deceased.
How to Claim Capital Losses In a Tax Return
Anytime you sell an investment for less than you paid to acquire the asset, you’ll generate a capital loss.
Can You Amend Form 8824 For a 1031 Exchange?
One of the most important documents associated with completing a 1031 exchange is IRS Form 8824 for like-kind exchanges.
How to Complete a Composite Tax Return
Pass-through entities may file composite tax returns in most states with a state-level individual income tax. The owners that are eligible to be included in a composite are those who are residents of other states. For example, suppose you reside in Michigan but are a partner in a company that owns property in California, New York, Utah, and Florida. In that case, your company may want to file a composite return for the states where you are not a resident.
Using an LLC for Estate Planning: What You Need to Know
An important part of estate planning is making sure you direct your wealth and assets to heirs and beneficiaries of your choosing. Another important part might also involve reducing the federal estate tax burden on these heirs and beneficiaries. Depending on the size of your estate when you pass, your spouse, children, or grandchildren might owe taxes on your assets when you pass away.