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What Qualifies as an Investment Property for a 1031 Exchange?
A 1031 exchange is a method that taxpayers can use to defer the payment of capital gains when they sell real estate under certain circumstances. For the transaction to succeed, it must involve the exchange of one investment property for another, and the properties must meet the IRS' definition of "like-kind." In addition, there are some other crucial rules governing the process, all of which the taxpayer must follow to avoid disqualification of the deferral:
What Is Next of Kin and How Does it Work?
If you die without leaving a will, you leave behind a complicated financial situation for your potential heirs. Regardless of any wishes you had for your estate while you were alive, your financial assets will be distributed according to the laws of your state.
What Is the Difference Between a Section 121 Exchange and a 1031 Exchange?
If you own an investment property and are in the market to sell for a new property, you can defer taxes using the IRS tax code provisions. Depending on the type of property you own, you may qualify for a 1031 exchange or a section 121 exchange. Learn the differences between the two and how you can take advantage of both to potentially defer your capital gains taxes.
How Many Beneficiaries Can You Have?
Creating a will can alleviate many legal and financial considerations upon your passing. It’s a legally binding document that ensures your spouse, children, and other named heirs are the beneficiaries of your estate. A will also avoids tying up your estate in a lengthy probate process that can delay the distribution of physical and monetary assets to your heirs.
Does a Transfer on Death (TOD) Override a Will?
One of the traditional means of distributing assets at the time of death is through a will, sometimes called the last testament. Wills are legal documents that codify the intended allocation of a person’s assets following their death, and they are a vital part of estate planning. However, if you don't have a will, you abdicate control over who gets what, and few people are willing to cede that authority to the probate courts.
How to Write a Letter of Instruction for Heirs
Protecting your financial legacy and ensuring the monetary and physical assets you’ve amassed are properly transferred to the beneficiaries of your choosing is a cornerstone of estate planning.
Do You Have to Pay Taxes on a Trust Inheritance?
Estate planning is crucial to ensure the capital and assets you’ve spent your career amassing remain with the beneficiaries of your choosing.
Can a Beneficiary Decline an Inheritance?
For many, receiving an inheritance is a life-changing financial windfall that provides the ability to pay off debt, upgrade into a larger home, invest in new business opportunities, or put money into your child’s college fund.
How Do I File a Late 1099-MISC Form?
Businesses document compensation paid to non-payroll employees and vendors using various 1099 forms. Gig workers, freelancers, and independent contractors receive a 1099-MISC, typically sometime in mid to late January, if they’ve earned more than $600 in compensation in a financial year.
What Is Fair Market Value and How Is it Calculated?
When you become a real estate investor (or any kind of asset investor, for that matter), understanding calculations, data and information allow you to understand asset performance. This is especially important when it comes to buying and selling those assets.
