The Realized Team’s Picks
What Is the 2-Out-of-5-Year Rule?
When selling your primary residence, taxes still matter — and they can get complicated. Your home is a capital asset and, therefore, subject to capital gains tax. If your home appreciates in value, you might have to pay taxes on profit. However, there are exceptions.
Can You Avoid Paying Capital Gains Tax by Buying Another House?
Can you avoid capital gains tax when buying another house? The answer is nuanced. If you're selling an investment property and planning to reinvest the profits into another, it is possible to defer capital gains tax. Under IRS Section 1031, if you reinvest your gains in a 'like-kind' property within 180 days of the sale, you may qualify for a deferral of capital gains tax. However, to maintain compliance with the rules, keeping your funds in an escrow account managed by a Qualified Intermediary is often necessary until the new property is purchased.
1031 Exchange Timeline: A Guide to Rules and Process
When you sell a property and reinvest the proceeds into another property, you can defer capital gains taxes. We will look at 1031 exchange timelines, including what to think about when planning an exchange, and what to do during the identification period, 180-day exchange period, and post-exchange monitoring period.
Drop and Swap 1031 Exchange in California: How to Navigate the Process
California, especially Silicon Valley, has long been regarded as an international hub for business. The Golden State’s economy is the largest in the U.S. and outranks all but a handful of foreign nations.
Do REIT ETFs Pay Dividends?
Real estate investment trusts (REITs) are companies that own and operate income-generating commercial real estate properties. Most REITs are publicly traded, which provides individual investors access to dividends derived from real estate without the burden of acquiring, managing, or obtaining financing for investment properties.
How to Report the Sale of Inherited Property On a Tax Return
Anyone who’s dealt with inherited property likely knows how important the step-up in basis can be for real estate transferred to heirs upon the owner’s death.
What Is A Realty Trust?
Many different trusts are available that can hold (and transfer) personal and real property.
How to Pick A Delaware Statutory Trust Broker
Delaware Statutory Trusts (DSTs) are sophisticated investment vehicles that allow individual investors to purchase fractional shares of the types of real estate often owned by real estate investment trusts, pension funds, and institutional investment firms.
Can You Rent an Investment Property to a Family Member?
Acquiring real estate for investment purposes can generate a multitude of benefits. One potential advantage involves the available deductions, including expenses and depreciation.
