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How Is Depreciation Recapture Calculated?
The IRS provides a nice tax benefit through annual depreciation for real estate investors. But as you might expect, what the IRS giveth, it also taketh away. This is also true for the depreciation deduction, but not immediately. You can continue taking the depreciation while owning the property, but once you decide to sell, the IRS will come knocking. In this article, we will walk through what depreciation is and how to calculate the corresponding depreciation recapture incurred at the time of sale.
How Do Tenants In Common File Taxes?
You may be familiar with the structure of a tenant-in-common arrangement, better known as a TIC. Under a TIC structure, each co-tenant or co-owner has an undivided, fractional share in a particular property.
Can I Invest Non-Capital Gains into an Opportunity Zone?
The Opportunity Zone program has been around for close to five years. Yet some questions remain about this initiative, including investment deadlines and what benefits can be realized from participation.
Capital Gains Tax on Real Estate: What You Need To Know
The idea of capital gains tax can hamper the prospect of selling a property and gaining profit. Having to pay capital gains tax affects your net profit from selling the real estate property.
How Long After a Person Passes Away Will a Beneficiary Be Notified?
When a person dies, any assets they've accrued over the years can be distributed in an orderly manner if a last will and testament was made before the decedent passed away. If a last will and testament wasn't made, the assets could be controlled by the state in which the decedent resided before distribution.
How Are Pensions Paid to Beneficiaries?
Financial security in retirement is a paramount concern for many Americans.
Can I Buy A Business With A 1031 Exchange?
A 1031 exchange is commonly used for real estate investment transactions but can also be used to buy a business.
Can You Do a 1031 Exchange On Jointly Owned Property?
Divesting jointly owned real estate can create complicated ownership issues and tax liabilities, especially if one co-owner wants to do a 1031 exchange to defer capital gains taxes and others want to cash out of their real property holdings.
How to Report the Sale of Investment Property on Your Tax Return
Selling a rental property falls under different taxation rules than selling your primary home. When you sell a rental property, it is considered the sale of a business asset and treated differently. You must report the sale to the IRS, and it is critical to know what to report and where to report it.
Are Refinance Closing Costs Tax Deductible on Rental Property?
Among the attributes of real estate investing that appeal to investors are the tax advantages that investors can use. First, the investor can deduct the costs of owning, maintaining, and operating rental property. This ability helps to reduce the taxes you pay on income from rental property. Deductible expenses include mortgage interest, property taxes, maintenance and repairs (not improvements), marketing, and similar items.
