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1031 Exchange Single Family into Multi-family: What You Need to Know
Considering a 1031 exchange from a single-family investment property into multi-family? If you set up the exchange correctly and complete the transaction within the strict timeline, it’s possible.
What Is Excluded from Net Income Investment Tax (NIIT)?
What Is the NIIT? The Net Income Investment Tax was imposed beginning in 2013 to help fund the Affordable Care Act. The NIIT is contained in Section 1411 of the Internal Revenue Code and applies a tax rate of 3.8 percent to the net investment income of individuals, estates, and trusts that have income above specific thresholds. It applies to income from these sources:
What Is Net Operating Income in Real Estate?
To consider the potential profitability of a real estate investment, there is a calculation called the net operating income (NOI). The calculation is done by taking the revenue earned from the real estate investment minus any operating expenses.
Can I Pull Equity from an Opportunity Zone?
Qualified Opportunity Zones (QOZs) were created as part of the Tax Cuts and Jobs Act (TCJA) in 2017. This legislation aimed to increase investment in economically disadvantaged areas of the country by encouraging investors to reinvest their capital gains from other successful ventures.
How Much Is the Penalty for not Paying Estimated Taxes?
If you bring in income that doesn’t automatically have taxes withheld, you are expected to pay estimated taxes to the IRS each quarter. If you don’t, you will face penalty fines.
What Is the Difference Between a Qualified Intermediary and FATCA?
A Qualified Intermediary or QI is a key participant in a 1031 exchange and is critical to the successful outcome of the transaction. Sometimes referred to as a 1031 Exchange Accommodator, the QI is responsible for the following actions:
What Is Direct Deeding in a 1031 Exchange?
Prior to 1991, in a 1031 tax-deferred exchange, a seller would deed a property to an intermediary who then deeded the property to a third-party buyer, known as sequential deeding. Now, there is the option for the seller to deed to property directly to the buyer, known as direct deeding.
Is a Section 1231 Gain Subject to Net Income Investment Tax (NIIT)?
What Is the Net Income Investment Tax? The Net Income Investment taxNIIT is contained in Section 1411 of the Internal Revenue Code and applies a tax rate of 3.8 percent to the net investment income of individuals, estates, and trusts that have income above specific thresholds. It began in the 2013 tax year and affects higher-income earners. The NIIT includes income from these sources:
Are Airports Eligible for New Market Tax Credits (NMTC)?
The New Market Tax Credit (NMTC) was created in 2000 to encourage investment in low-income, economically distressed areas by allowing federal income tax credits for investments in Community Development Entities (CDEs). The NMTC was initiated by PL 106-554 (the Community Renewal Tax Relief Act of 2000) and has distributed credits worth $26 billion through 2020.
Can a Partner of an LLC Defer Capital Gains Taxes on QOZs?
Much of what is written about the Opportunity Zone program involves investors with capital gains from the sale of capital assets. Those gains can be invested in Qualified Opportunity Funds (QOFs) which, in turn, place those resources into one of 8,000 Qualified Opportunity Zones (QOZs). The investors can then benefit from deferred taxes on those capital gains.
