What Is A Section 1250 Property?
Section 1250 has two components — property and depreciation. It uses a depreciation recapture rule that applies to certain property types held for more than one year. Properties that use the straight-line depreciation method do not fall under section 1250. For properties that take depreciation greater than the straight-line method, the rule applies, and depreciation must be recaptured upon the property's sale.
Forbearance During Covid-19: Updates and Trends
As the investment community continues to find our way through the ever-changing labyrinth of conditions that comprise the commercial property environment, navigating forbearance as a landlord, investor, or tenant remains fluid, even chaotic. Tenants are doing their best, as are owners, and financial institutions and investors respond to requests with the available information at the time.
How Much Are Capital Gains Tax On A House?
Countless investors have sought portfolio diversification -- and potential monthly income -- through residential investment properties. Residential real estate markets are red hot in many parts of the country, and you might be considering selling a residential property to realize additional capital from your asset’s appreciation. Unfortunately, the IRS may take a big bite of your proceeds. In this article, we’ll examine how much you’ll potentially pay in capital gains tax on the sale of a residential investment property, and if you can avoid paying any taxes at all.
How Does A 1031 Exchange Affect The Seller?
Experts pay a great deal of attention to the taxpayer's actions required for completing a Section 1031 exchange. Less advice is available to the investor selling property as the replacement asset in that 1031 exchange transaction. However, the seller should be aware of some deadlines and potential “bumps in the road” as well.
What Is Preferred Equity?
Preferred equity has its advantages over other shareholder classes. But along with those advantages are some disadvantages. In this article, we’ll go over what preferred equity is and how it is used in real estate.
Does Medicare Tax Apply To Capital Gains?
Capital gains taxes are something every investor must contend with. But these taxes aren’t limited to just short and long-term gains. There’s another tax called the Medicare tax that can also get thrown in. It doesn’t happen to everyone, though. In this article, we’ll look at who the Medicare tax effects.
Are Triple Net Leases Good Investments?
A triple net lease (NNN) consists of three nets — taxes, insurance, and maintenance. The tenant pays for all three. The landlord is responsible for capital expenditures related to structural issues of the property. The landlord may also have to prep the space for a new tenant.
Evaluating Real Estate Risk
Every investment involves risk with the possibility of gain. Where risk is the potential for financial loss and/or uncertainty in investment decisions or activities, accurately quantifying the level of risk is key to healthy investing.
What Is A Forward 1031 Exchange?
A forward 1031 exchange completes the close on the relinquished property before acquiring the replacement property. This method and a simultaneous 1031 exchange, where both properties are closed at the same time, are the two most common 1031 exchange methods (the third is a reverse 1031 exchange). A forward 1031 exchange is also sometimes called a “Like-Kind Exchange,” “Starker Exchange,” or “Delayed Exchange.” All the 1031 exchange deadlines and rules still apply with a forward 1031 exchange. A qualified intermediary (QI) has the same role in a forward 1031 exchange as in other 1031 exchanges. As with the other 1031 exchanges, a forward 1031 includes the same great tax deferral benefits.
What Is Included In A Triple Net Lease?
A triple net lease, also called a NNN, is a popular commercial real estate lease type. In a NNN, the tenant pays for all expenses except structural and some insurance. Basically, the tenant is paying only for their use of the property. The tenant’s responsibilities include three nets:
