The Realized Team’s Picks
What Is the 6 Year Rule for Capital Gains Tax?
Many countries have implemented a capital gains tax, but capital gains tax rates and the tax structure itself vary greatly from one country to the next.
What Is The Rate Of Return Of A Delaware Statutory Trust?
Unlike a direct real estate investment, investing in a DST is less complicated. There isn’t any rehab that investors must spend money on. There are no closing costs. The cost-basis is easy to figure out. All of that helps simplify the Delaware Statutory Trust rate of return (RoR) calculation. In this article, we’ll dig into what you need to know about calculating the RoR on a DST.
Are HOA Fees Tax Deductible?
If you’re looking at properties, you may notice some houses and condos for sale have HOA fees in their listings. You might be wondering if HOA fees are mandatory, how often they need to be paid, what the fees cover, and if you can deduct HOA fees from your taxes. HOA payments are an added cost to consider when making your monthly housing budget.
Ways to Offset Capital Gains
Profiting from the sale of an investment, such as rental property, land, or stock shares, will generate a capital gains tax liability.
Can I Deduct Supplemental Property Tax?
Whether you own your own home (and use it as a primary residence) or own investment properties, you understand one thing. Namely, state and local property taxes can generally be deducted from your federal income taxes. While the Tax Cuts and Jobs Act of 2017 caps those deductions at $10,000 (or $5,000 if you are married and filing separately), the deductions can be used to help offset your income. The result is a potentially lower tax burden.
Where Do You Record Unrealized Gains and Losses?
Investments that have increased in value and are sold for profit generate realized gains, which are subject to capital gains taxes. Unrealized gains, on the other hand, are gains on paper that won’t be taxed unless you sell the investment for a profit.
Can You Tax Loss Harvest in an IRA?
Tax loss harvesting is a tax-advantaged strategy available to investors. It applies to securities and other assets. Basically, tax loss harvesting offsets gains with losses. But can it be applied to an IRA?
You Can Do a 1031 Exchange on a Primary Residence—Here's How
“Can you use a 1031 exchange for your primary residence?" is a common query among homeowners. However, the simple answer, according to IRS guidelines, is 'no.' A primary residence does not meet the 'held for productive use in a trade or business or for investment' requirement stipulated by IRC Section 1031. This requirement forms the foundation of a tax-deferred exchange. 1031 exchanges are used primarily to defer capital gains taxes on investment properties. Yet, it's worth noting that certain exceptions exist within the Internal Revenue Code, adding layers of complexity to this seemingly straightforward ruling.
Can A 1031 Exchange Be Used For New Construction?
A 1031 tax-deferment can be used on many types of investment property exchanges. However, can an investor use a 1031 Exchange for an upcoming construction project?
How Do You Calculate Basis for a 1031 Exchange?
When discussing 1031 exchanges, the concept of 'basis' becomes crucial. But what does it mean in the context of a 1031 exchange? Essentially, the basis of the replacement property acquired in a 1031 exchange is the same as the basis of the relinquished property, subject to certain adjustments. This basis carries over from your old property to your new one, effectively preserving the deferred gain for potential recognition in the future. It's this ability to defer capital gains taxes through basis transfer that makes 1031 exchanges such a powerful tool for real estate investors.
