Are Opportunity Zone Investments Subject to Alternative Minimum Tax (AMT)?
If there’s one thing that’s for certain, you can’t escape taxes. To make sure individuals don’t take advantage of too many tax loopholes and at least pay a minimum amount of tax, the U.S. government placed a floor on the percentage of taxes that a taxpayer must pay to the government, known as the alternative minimum tax, or AMT.
What Are Private Assets?
Private assets are assets held in investments that are not publicly traded. This includes investments with private equity and privately managed equity real estate funds, among others. According to the Securities and Exchange Commission (SEC), an asset is “any tangible or intangible item that has value in an exchange. A bank account, a home, or shares of stock are all examples of assets.”
1031 Exchange and Divorce: What You Need to Know
Dividing real estate during a divorce can be difficult -- doubly so with assets acquired through a 1031 exchange.
What Is Relinquished Property?
In a 1031 exchange capital gains taxes are deferred when a taxpayer sells a qualified real estate investment and uses the funds to buy a like-kind property. The property being sold is the relinquished property and the new investment is known as the replacement property.
How To Determine Land Value in Commercial Real Estate
Various factors determine the value of a commercial property, and it's difficult to pinpoint which has the most significant influence. Many people who invest in commercial real estate may not fully understand how to evaluate their potential investments or what factors to consider when doing so.
Is Depreciation an Allowable Expense?
Allowable expenses are essential business costs that are not considered part of the company’s taxable profits. When it comes to depreciation as an allowable expense, it refers to depreciation that an investor or business is allowed to deduct from its tax liabilities. If you own rental property, the IRS views depreciation as a rental expense, which may be tax-deductible.
What Is the Debt Service Coverage Ratio in Real Estate?
Oftentimes, commercial real estate plays require bank financing. Securing financing from a commercial lender is a much different process than obtaining a residential loan, however.
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.
