Can Tenants In Common Force a Sale?
Tenant in common is a frequently used joint ownership agreement for commercial and residential real estate. Commercial real estate investors often purchase individual interests in TIC properties to complete 1031 exchanges and defer capital gains taxes on the sale of investment properties.
What is a Section 1231 Gain?
Selling a business or investment property is a big decision with many financial ramifications. Sure you’re likely to gain some profit, but you’re also likely to be hit with a significant tax liability on any gains realized from your assets.
Capital Gains Tax On Primary Residence: How Much Is It And Can It Be Avoided?
A primary residence is not an investment property and thus has different tax outcomes. Primary residence homeowners can take advantage of certain tax benefits when selling their home. This benefit is called section 121 primary residence tax exclusion.
Do Opportunity Zone Credits Impact Regular Stock Gains?
Much of the discussion concerning Qualified Opportunity Zones (QOZs) investments seems to involve real estate sales. Capital gains from those dispositions can be put toward a Qualified Opportunity Fund (QOF), which then reinvests those monies into a federally designated Opportunity Zone.
Capital Gains Tax On Second Home: How Much Is It And Can It Be Avoided?
When selling a second home or vacation home, the taxpayer will incur capital gains taxes on any gain. These taxes would be treated as long-term capital gains if the home was held for more than a year. Long-term capital gains have rates of 0%, 15%, and 20%, dependent on the taxpayer’s income.
Can Tenants In Common Have Unequal Shares?
A tenancy in common is a legal ownership structure that allows two or more people to jointly purchase and hold real estate. TIC properties offer several potential benefits for 1031 exchange investors seeking to defer capital gains from the sale of investment properties.
What is Revenue Procedure 2002-22?
In March of 2002, the IRS issued guidance for investors regarding undivided fractional interest when purchased as replacement properties in 1031 exchanges. In the form of Revenue Procedure 2002-22, the advice superseded and repealed Revenue Procedure 2000-46. 2002-22 issued the guidelines under which taxpayers could seek an advance ruling for treating undivided interests as allowable assets under Section 1031.
Making the Most of Inherited Property
For someone new to property investment, the occasion of an inheritance may be the start of a significant opportunity. If you have just inherited property and want to ensure that you lay the foundation to grow your wealth from the beginning, it’s a good idea to seek out trustworthy advisors to guide you. In this situation, step one is probably to determine your tax situation.
What is an Absolute Net Lease?
In commercial property investing, there are numerous types of leases with different expense structures. Though not typical, the simplest is a gross lease, in which the tenant pays a base rent, and the owner is responsible for managing all other expenses, including taxes, insurance, maintenance, and repairs. Net leases are more popular than gross, with subtypes single net, double net, triple net, and absolute. Generally speaking, a net lease assigns the following expenses to the tenant:
What is a SERP Retirement Plan?
A SERP retirement plan, or supplement executive retirement plan, is a non-qualified deferred compensation retirement plan offered by companies in addition to the company standard retirement plan to highly paid employees. Because standard retirement plans such as the 401(k) have limited annual contributions, SERP retirement plans are used to reward top executives with supplemental retirement contributions.
