How to Calculate Mortgage Interest and Payments
Paying your mortgage is usually priority number one for a consumer, as it should be. For people at the beginning of building a real estate portfolio or accumulating assets of any type, that first property is the foundation. Billionaire Andrew Carnegie is known for having said that 90% of millionaires got their start in real estate. Many got their first properties by buying a home and used their equity to finance additional purchases.
How to File Rental Property Depreciation
Buildings wear through normal use. It’s part of the old saying — nothing lasts forever. The IRS provides real estate investors with a tax benefit for the wear on their buildings. This tax benefit is called depreciation. Depreciation is a reduction in the value of an asset over time due to wear and tear.
How to Defer Taxes on Capital Gains
Selling a rental property means freeing up capital, hopefully nabbing a tidy profit, and moving on to the next great opportunity. It also means paying taxes on those gains unless you have a plan to defer them.
Does a Triple Net Lease Include Utilities?
A triple net lease (NNN) is a lease agreement between a landlord and a tenant or lessee on a property where the tenant agrees to pay property expenses including real estate taxes, building insurance, and maintenance fees. These expenses are in addition to rent and utility expenses. In most cases, the cost of utilities is dependent on tenant usage.
What is a Good Interest Rate on a Mortgage?
The question about mortgage interest rates is anything but simple. The interest rate that you pay for a mortgage is affected by market factors and the details of your financial situation, in addition to the purpose of the mortgage.
How Long Can Money Sit in a 1031 Exchange?
The 1031 exchange is a beneficial tool for investors to use when considering changes to the investment portfolio. Perhaps you are seeking to diversify your asset mix or shift from direct ownership to fractional investments. You can work toward various goals without paying taxes on the appreciation of the properties you are selling if you work within the exchange rules.
How Does a 403B Retirement Plan Work?
Most people associate 401(k)s with retirement planning, but one-fifth of workers are actually covered under 403(b) plans. Collectively, these U.S. employees have banked close to one trillion in savings.
How to Evaluate an UPREIT
Umbrella Partnership Real Estate Investment Trusts (UPREITs) are a way to gain the passive income potential of a real estate investment by exchanging an appreciating property into a REIT in return for units in the trust instead of selling it outright.
What States Do Not Tax Retirement Income?
Retirement is something that most people can look forward to. You can choose to permanently leave the workforce behind, kick up your feet, and collect the retirement income that you’ve worked so hard to earn. One important thing to remember — you’ll likely continue to pay taxes.
How To Calculate Adjusted Basis Of Rental Property
Understanding how to calculate the adjusted cost basis of a rental property is essential to accurately determine its value and potential profits from a sale. Also, the adjusted basis isn't the same as the basis. Once you finish reading this article, you should understand the difference between these two terms and be able to work through calculating the adjusted basis.
