What Is Direct Deeding in a 1031 Exchange?
Prior to 1991, in a 1031 tax-deferred exchange, a seller would deed a property to an intermediary who then deeded the property to a third-party buyer, known as sequential deeding. Now, there is the option for the seller to deed to property directly to the buyer, known as direct deeding.
Is a Section 1231 Gain Subject to Net Income Investment Tax (NIIT)?
What Is the Net Income Investment Tax? The Net Income Investment taxNIIT is contained in Section 1411 of the Internal Revenue Code and applies a tax rate of 3.8 percent to the net investment income of individuals, estates, and trusts that have income above specific thresholds. It began in the 2013 tax year and affects higher-income earners. The NIIT includes income from these sources:
Are Airports Eligible for New Market Tax Credits (NMTC)?
The New Market Tax Credit (NMTC) was created in 2000 to encourage investment in low-income, economically distressed areas by allowing federal income tax credits for investments in Community Development Entities (CDEs). The NMTC was initiated by PL 106-554 (the Community Renewal Tax Relief Act of 2000) and has distributed credits worth $26 billion through 2020.
Can a Partner of an LLC Defer Capital Gains Taxes on QOZs?
Much of what is written about the Opportunity Zone program involves investors with capital gains from the sale of capital assets. Those gains can be invested in Qualified Opportunity Funds (QOFs) which, in turn, place those resources into one of 8,000 Qualified Opportunity Zones (QOZs). The investors can then benefit from deferred taxes on those capital gains.
Where Do I Put My REIT Income on a Tax Return?
Real estate investment trusts are one way investors can own interests in commercial real estate without having to navigate the common management and operational issues that are associated with direct property ownership.
Who Are the Parties to a Delayed 1031 Exchange?
On the surface, the 26 U.S. (IRC) Code § 1031 is pretty basic. Operating under the title of “Exchange of Real Property Held for Productive Use or Investment,” the 1031 exchange allows you to exchange currently held real property into designated replacement property, or properties. A successful like-kind exchange means you can defer capital gains taxes.
What Is a Living Trust?
Estate planning is one of the most responsible things that you can do to make sure that your loved ones are taken care of after your passing. One of the most effective tools that can be a part of your estate plan is a living trust. Understanding what a living trust is and how to properly utilize one can ensure that your estate plan meets your own expectations and the needs of your beneficiaries.
How Are REITs Taxed?
Real Estate Investment Trusts, or REITs, can offer investors many of the potential benefits associated with real estate investments without the common pitfalls of direct property ownership.
What Is a Step-Up in Basis?
Basis plays an important role in real estate. Typically, it’s the all-in cost of an asset, including sales tax and capital expenses incurred during acquisition such as appraisals, attorney charges, sales commissions, loan and document fees, mortgage insurance premiums, inspections, and other common closing costs.
Do Bonds Help Manage the Overall Risk of an Investment Portfolio?
Excessive risk is equated with excessive returns. But not everyone has an interest in high-risk, high-return portfolios. For investors who want to manage risk in their portfolio, are bonds the answer? A financial advisor will likely say yes, but why? Let’s dig into the details.
