Is Property Transfer Tax Deductible?
Property transfer taxes are taxes on property transfers. The transfer transaction is similar to a buy/sell transaction in that ownership of the property changes. There is still a closing, potentially a real estate agent, fees, and the title. However, unlike a buy/sell transaction, there are no funds involved.
Are Realized Gains in an IRA Taxable?
Gains are profits made from an investment. There are two types of gains — unrealized and realized. A realized gain is created when an investment is sold for a profit. Most realized gains are taxable. Depending on whether the gain is short-term or long-term, the tax rate will differ. How does that compare when those gains are created in a retirement account such as an IRA? That’s what we’ll look into now.
Tenancy in Common (TIC): What It Is & How It Works
Many types of investment vehicles exist today, each one offering structures and benefits that make them of interest to investors. For those who want to buy a property with a friend or relative, they can enter a tenancy in common (TIC) arrangement, which allows for the shared ownership of a real estate asset.
How Do I Report the Sale of Mineral Rights on My Tax Return?
While the royalties you could earn from mineral rights are taxed as ordinary income, the IRS considers the amount gained from selling those rights a capital gain. As with the sale of real estate or other capital assets, you must report the sale of mineral rights on Form 4797. The calculation and payment of the taxes on that gain will depend on several variables.
What Types of Properties Do Not Qualify for a 1031 Exchange?
A 1031 exchange is great for tax deferment, but not all properties qualify for this special tax treatment. In addition to the many rules to be aware of when considering a 1031 exchange, knowing if a property is even eligible is likely the first place to look.
