The Realized Team’s Picks
Can You 1031 Exchange a Second Home?
Second homes can be personal or investment property, and sometimes there is a fine line between the two. If you own a second home that you live in part of the year, and you bought it thinking the value would increase, but you don't rent it to others, it's most likely not an investment. If you have a second home in a popular vacation area and rent it to others most of the year, but you consistently spend a week there over the holidays, that is likely an investment property.
Can My S Corp Buy My House?
An S corp can be a valuable structure for a business, offering streamlined operations and some potential tax advantages. An S corporation has less than 100 shareholders and can be a sole proprietorship or a larger company. This entity does not pay federal income taxes at the corporate level but instead passes income or losses to shareholders to be reported on their returns. However, some states require S corporations to pay income taxes, including New York and California.
Estate Planning: What It Is, What It Costs, Finding the Right Attorney & More
There’s one eventuality that no one can escape: death. As morbid as it may sound, you have to prepare for your ultimate passing, especially if you have assets that you want to protect or bequeath after you pass away. Planning for the future may be daunting, but there’s a practice that helps streamline this process: estate planning.
Does Retirement Income Affect Unemployment Benefits?
Retirees often have multiple sources of income. These can include Social Security benefits, pension plans, individual retirement accounts, brokerage, and other investment accounts. They can also even include side hustles like driving for Uber or Lyft.
What Assets Get a Step-Up in Basis at Death?
Valuing a person’s estate when they die can be a complex issue. This is especially true if they have held certain assets for a long time and those assets have realized significant capital appreciation.
Can You 1031 Exchange Into A Property You Already Own?
Generally, a 1031 exchange on a property you already own cannot be done, but with some creativity, there are some ways around it.
Real Estate Investment Risk: What You Need To Consider
Investing in real estate has long been recognized as a means to build wealth and generate a steady income — and for many investors, real estate properties are the main assets in their portfolios. However, this doesn’t mean that real estate doesn’t have any risks. In fact, there are several types of risks associated with this industry. Understanding each of these challenges is critical to ensure protection for your capital, increase the potential for high returns, and decrease the chance of loss.
How Long Do You Have to Hold Property in a 1031 Exchange?
Suppose you have previously executed a 1031 exchange, selling one property and reinvesting the proceeds into a replacement while deferring capital gains taxes. In that case, you already know the process requires strict adherence to tight time frames. First, you must identify potential replacement assets within 45 days of the sale and then complete the purchase transaction within 180 days (including the 45 designated for identification). Meeting this requirement can be challenging, but the reward is the ability to reinvest the entire proceeds from the sale while delaying the need to pay the capital gains taxes.
Are IRA Withdrawals and Distributions Taxed as Ordinary Income?
Unexpected financial events and major expenses are commonplace, but they can impact your retirement funds. This is especially true if you withdraw money from a retirement account to pay for them.
1031 Exchange Loan: What It Is, How It Works & Rules To Consider
A 1031 exchange may be an appealing option for some investors, but there are many rules that you must comply with before you can enjoy the tax deferral benefits. Given the structure of a like-kind exchange, it may seem like loans are unnecessary. However, there are cases when you have to borrow funds, especially when timing and liquidity become issues.
