Do I Have to Pay Tax on Stocks If I Sell and Reinvest?
Earning returns is the primary motivation for investing in stocks. Investors may also seek income through dividends, among other goals, but typically buy stocks hoping the value will increase. Early investors in successful businesses can gain substantially by buying stock and selling it when the share price is high.
What is a Section 897 Capital Gain?
In 1980, Congress enacted the Foreign Investment in Real Property Tax Act (FIRPTA) to address concerns about increasing foreign land ownership in the US. The Act implemented a requirement for withholding taxes on foreign entities' sale of US properties. What’s interesting about the withholding requirement is that the property buyer is responsible for ensuring the amount is withheld and transferred to the IRS.
Can Net Operating Losses Offset Capital Gains?
Anytime your business’s losses and allowable deductions exceed its income for a given tax year, you’ll be left with a net operating loss (NOL).
How is Rental Income Taxed When You Have a Mortgage?
Owning rental property has positive benefits. One of those benefits could be potential cash flow from tenant payments. However, most incomes are subject to some kind of tax, and rental income is no different. But if you took out a mortgage to buy or refinance your rental property, how is your rental income taxed?
Using a 1031 Exchange For a Lower-Priced Property: What You Need to Consider
We’ve written many blogs about 1031 exchanges. And the one point we continue to stress in these blogs is that the IRS has specific rules if you want to potentially defer capital gains and depreciation recapture taxes through a like-kind exchange.
Can You Do A 1031 Exchange On Vacant Land?
Vacant land is a real estate asset eligible for a 1031 exchange transaction. However, 1031 exchanges can be tricky to execute, and a deal involving vacant land has a few extra pitfalls to watch out for.
What Closing Costs Are Tax Deductible When Selling Rental Property?
Investors who sell investment real estate can deduct many of their settlement and closing costs, and these deductions can have significant tax implications.
Delaware Statutory Trust (DST): Advantages & Disadvantages To Consider
For those who are interested in leveraging the 1031 exchange, joining a Delaware Statutory Trust (DST) is one popular approach you can take. This investment vehicle offers various advantages that make it easier for you to enjoy the tax exemptions of a 1031 exchange. Of course, disadvantages of DSTs exist. Understanding these risks and challenges is critical to help you make more informed investment decisions.
Do I Have To Pay Capital Gains Tax If I Sell My House and Buy Another?
Selling your home and buying a new one is a significant financial decision for several reasons. For one thing, your home’s sale and your purchase of a new one represent sizable investments on your part. The second and more pressing reason is that this transaction may come with tax implications.
Can a Trust Deduct Property Taxes?
For some, trusts seem to take on a powerful aura. They believe that by setting up a trust, they'll avoid probate, protect their assets, and save on taxes. You might be disappointed to know that it doesn't work quite like that.
