The Realized Team

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.

When A 1031 Exchange Is Not Always The Right Choice

Here at Realized, we help investors defer their capital gains and depreciation recapture liabilities from the sale of an investment property/properties. This is done through a tax code provision known as a1031 exchange and here at Realized, this is typically accomplished via investment in one or more 1031 exchange-qualifiedDelaware Statutory Trust (DST) offerings.

How Many Times Can I Claim Capital Gains Exemption?

1099 and Schedule K-1 Forms: What You Need to Know

The 1099 and Schedule K-1 Forms are tax return-related forms for different types of income. There are several 1099s. The one you receive depends on where the income comes from. The K-1 is for business owners or partners.

Do You Pay Capital Gains on a Roth IRA?

During the decades since traditional pension plans started declining, people have become increasingly responsible for creating their own retirement income. Many companies help by offering a 401(k) account, but not everyone is eligible for an employer-based retirement vehicle. For those investors, one crucial component of their retirement strategy is saving in IRAs (Individual Retirement Accounts). IRAs have numerous variations, but the two primary types are traditional and Roth.

Are Multifamily Properties Considered Commercial?

The definition of a multifamily property is simple, a building that has more than one housing unit. But, are multifamily properties commercial or residential?

What are Passive Losses on Rental Property?

If there is a loss realized on a rental property that generates passive income for the owner, it is considered a passive loss, or a passive activity loss. As the owner of a rental, it is important to understand what passive losses are on a rental property.

Is Home Equity Loan Interest Tax Deductible for a Rental Property?

Mortgage financing is a common way for real estate investors to acquire investment properties. Borrowers who derive rental income from investment properties have many important tax breaks available to them.

Do You Have to Pay Estimated Taxes on Stock Gains?

Investing in the stock market can diversify your income. And while stock gains are a cause for celebration, you will owe capital gains tax on the increase in the asset’s value. If this is your first time investing, you may not know that the IRS requires an estimation of taxes to be paid quarterly and not just once a year on April 15th.