What Is Depreciation Recapture And How Is It Calculated?
Real estate offers investors many different tax-advantaged strategies that can prove beneficial for limiting their annual tax obligations. Depreciation is one of the most valuable tools investors can use to reduce their federal tax liability by deducting or writing off a portion of their annual investment costs during the approved lifespan of commercial real estate assets.
Real Estate And Property Risk
Most investments come with some degree of risk. Generally speaking, the greater the risk, the higher the return requirements on your investment.
Do Tenants In Common Pay Inheritance Tax?
A common question from someone inheriting a property held by Tenants-In-Common (TIC) is if there is a need to pay inheritance tax.
How To Avoid Capital Gains Tax On Business Sale
Thinking about selling your business and worried about capital gains tax? There are several strategies that you can implement to potentially avoid or lower these taxes. Here are some options to keep in mind:
What Is Passive Income And How Do You Generate It?
Potential passive real estate income typically requires less effort and maintenance compared to direct real estate investments. Of course, you’ll want to stay on top of what’s going on with passive income sources and sponsors (if applicable). Designing a passive income plan isn’t a set-it-and-forget-it. But unlike earned income generated from a job (i.e., employee), passive income requires little involvement once it is set up.
Do Capital Gains Count As Income?
When a taxpayer sells an asset for more than its basis, it’s generally regarded as taxable income. This can be any asset - from a real estate investment property to your car or even your TV. These are considered capital gains, and taxpayers are responsible for accurately reporting this information to the IRS.
Can I Use A 1031 Exchange For Property Improvements?
A 1031 exchange allows investors to sell one property and purchase another like-kind property while deferring taxes on gains. This doesn’t mean you must purchase the replacement property for the same price as the relinquished property. The replacement property can be a higher or lower value. But if you want to defer all gains, the replacement property must be at least of equal value.
Who Helps Me With My 1031 Exchange?
What are the different advisory roles needed to execute a 1031 exchange successfully? You'll have direct interaction with some of the people involved with your 1031 exchange. At the same time, others will be behind the scenes, although they are just as important. In this article, we'll look at the different roles you'll interact with when executing a 1031 exchange.
What Does Tax Deferred Mean?
Tax deferral is a tax-strategy that pushes out the due date on taxes for gains on an investment. For example, if you purchase a property for $300,000 and five years later sell it for $350,000, the gain will be $50,000. The IRS will want its share of that gain through taxes.
Do I Need A Real Estate License To Invest?
You don’t need a real estate license to invest, but does it help? This is a common question from new investors, and although it’s not necessary, it depends on your personal investment goals. You need to look at the pros and cons of getting a real estate license as an investor.
