Have Opportunity Zones Been Successful?
The Qualified Opportunity Zone program, introduced as part of the Tax Cuts and Jobs Act of 2017, allows investors to defer paying capital gains taxes by directing those gains into Qualified Opportunity Funds (QOFs). Those funds then move monies toward improving federally designated lower-income tracts. Now entering its fourth year, the program boasts more than 8,700 census tracts designated for QOZ funding.
Can I Sell My Rental Property With Tenants In It?
Investors acquire real estate for a variety of reasons, one of which is the potential for cash flow from tenants. While tenants can be the backbone of potentially successful real estate ownership scenarios, when it comes time for disposing of that duplex or small shopping center, the potential seller may ask himself/herself: “Can I sell my rental property with tenants in it?”
Ways to Finance an Investment Property
If you are an aspiring real estate investor, you may be anxious to get started. Traditionally, real estate can be a path to building wealth, although there are no guarantees, and even real estate can decline in value.
Is the Down Payment on an Investment Property Tax Deductible?
Some may argue that the down payment on an investment property is tax deductible. If an investor puts down $50,000 and wants to write that off as a business expense, what’s stopping her. The IRS is very clear on this — you can’t deduct an expense with a multi-year useful life in the same year the expense is incurred.
How to Buy an Investment Property with a Partner
Buying an investment property with a partner might include anything from personality conflicts and strains on relationships to the positives of distributing workload and the combination of resources.
Form 8824 - Section III Explanation
Form 8824 is the part of an investor’s tax return that contains 1031 exchange transaction information. Section III of the form determines the net results of the transaction (gain or loss). This section is the 1031 exchange transaction and how the IRS receives information about the transaction’s gain or loss for tax reasons.
How to Value Multifamily Properties
Finding the value of multifamily investment properties is different than looking at the value of other types of real estate, simply for the fact that you will likely be renting to several tenants, and will have the upkeep of multiple units.
How to Report Opportunity Zone Deferral
If you’ve been paying attention to our blogs, you know that we’ve been writing a great deal about the Qualified Opportunity Zone (QOZ) program. This program allows you to take the capital gains earned from the sale of assets, and redirect those gains toward a Qualified Opportunity Fund (QOF). The result, for you, is a deferral of taxes on those profits.
What is Entitlement Risk?
Entitlement risk is often associated with new development, but it also occurs with property conversions. It can present a number of surprises and can be a very time-consuming process. When entitlement risks are involved, there’s no guarantee that a project will even be successful. In this article, we’ll go over what entitlement risk is and the challenges that it presents to real estate investors.
What is the Capital Gains Tax on Rental Property, and When Do You Pay It?
Along with the potential benefits of rental property ownership, is one downside. This involves annual taxes owed to the IRS, and encompasses both the rental income you might earn during your time of ownership, and the profit resulting from the sale of that property -- also known as capital gains.
