Is Rental Property Subject to Net Investment Income Tax (NIIT)?
Net rental income is subject to net investment income tax, or NIIT, but only on a portion of your modified adjusted gross income above certain thresholds. Additionally, gain from the sale of rental property may also be subject to NIIT unless the rental activity is part of an active trade or business.
What Is Tax Gain Harvesting?
If you are familiar with tax loss harvesting, tax gain harvesting is just the opposite. It looks at tax efficiencies available for gains rather than losses. We’ll walk through an introduction with some examples to give you a good idea of what tax gain harvesting is and when to use it.
Can I Buy a Timeshare With a 1031 Exchange?
In a 1031 exchange, a tax-deferred exchange is done by selling an investment property and replacing it with another like-kind property. A timeshare is considered a personal-use property, which does not qualify for a tax-deferred exchange.
What Happens If I Don't Report Rental Income?
Owning rental property is often considered an attractive method of building wealth. The benefits may include the following:
What Does Escrow Mean in Real Estate?
Understanding how escrow works can be important in real estate investing. Escrow accounts protect you during a real estate transaction and ensure that both parties meet all requirements before money is exchanged.
What Is Net Income Investment Tax?
Net Income Investment Tax also referred to as NIIT, doesn’t apply to everyone. Certain conditions must be met. In this article, we’ll go through the details of what NIIT is and when you can expect to incur it.
What Is a Private Fund Manager and How Do I Find One?
If you hold any type of private funds, such as real estate funds or private equity, you may want to consider working with a private fund manager to help manage your assets. A private fund manager can assist you in organizing your assets and developing an investment strategy to pursue some of the highest returns possible on your investments.
Can You Gift a 1031 Exchange Property?
Completing a 1031 exchange after selling an investment property can bring many potential tax benefits, such as deferral of any capital gains and depreciation recapture taxes incurred from the sale of your original investment property.
What Is an Accredited Investor?
An accredited investor is an investor who is able to participate in investments not registered with the Securities and Exchange Commission (SEC) and other agencies by meeting certain qualifications regarding their income, net worth, professional experience, or licensing.
Is There a Penalty For Filing a Tax Extension?
Sometimes situations occur when you might not be able to pay your taxes by the deadline. While there isn’t a penalty just for filing an extension, there are fines you might face for not paying on time.
