Sebastian’s Recent Posts

How Are Mortgage Rates Determined?

Your mortgage interest rate can substantially impact your monthly payment and even your ability to qualify for a home or investment loan. You have probably noticed that rates are volatile, increasing from below three percent last year to recent rates of over seven percent for a 30-year fixed loan before settling into the 6.5 percent range. By comparison, back in the early 1980s, mortgage rates hit 18 percent.

Mar 26, 2023

What Happens If You Don't File Form 8824?

The 26 U.S. Code § 1031—”Exchange of Real Property Held for Productive Use or Investment”—can help defer any potential taxes levied on gains resulting from the sale of investment real estate. Swapping your relinquished property for a replacement property of equal or greater value can push your tax burden down the road at least, as long as you follow the IRS’ many rules regarding the like-kind exchange. 

Mar 21, 2023

What Does Adjusted Basis Mean on Form 8824?

The adjusted basis of an investment property is the basis after subtracting expenses and adding improvement-related costs. Form 8824 is used to file like-kind exchanges. The basis is a requirement for form 8824. The basis of an investment property is a little different than the basis used for properties in a 1031 exchange. In this article, we’ll look at what a basis means for form 8824.

Mar 16, 2023

How Does a 1034 Exchange Work?

Once upon a time, before the late 1990s, you could sell your personal residence for a profit. The issue, however, was that the capital gains on that sale might automatically trigger a taxable event in the form of capital gains taxes. Unlike today, those tax rates were high, averaging 28%. 

Mar 12, 2023

What is Tenancy by Entirety?

Married couples have a plethora of important financial decisions to make, and one of the biggest comes when they purchase a home together.

Mar 7, 2023

Can Long-Term Capital Losses Offset Short-Term Capital Gains?

Long-term and short-term capital gains have different tax rates. There are IRS restrictions on how these different gains/losses are matched and offset each other. In this article, we go over the ins and outs of offsetting capital gains and losses.

Mar 3, 2023

What is a General Durable Power of Attorney?

Power of attorney is a term most people have heard. However, there are multiple types, and it is important to understand the difference when you are planning your estate. A power of attorney can give an agent or agents you name the ability to act on your behalf financially, medically, and in other matters. 

Feb 26, 2023

What is a Self-Directed IRA in Real Estate

Self-directed individual retirement accounts (SDIRAs) can have some potential benefits compared to traditional employer-sponsored retirement accounts, especially for experienced investors. 

Feb 22, 2023

Can I Use Rental Income to Qualify for a Mortgage?

In the wake of the national housing crash that began way back in 2007 as a result of lax mortgage lending standards, obtaining a mortgage has become much more difficult as lenders tightened their underwriting criteria. 

Feb 18, 2023

How to Sell Farmland Without a Realtor

Farmland owners who choose to sell their land holdings often engage brokers or realtors with extensive experience selling farmland to help them navigate the sale process. 

Feb 14, 2023

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