Can I Buy A Business With A 1031 Exchange?
A 1031 exchange is commonly used for real estate investment transactions but can also be used to buy a business.
Can You Do a 1031 Exchange On Jointly Owned Property?
Divesting jointly owned real estate can create complicated ownership issues and tax liabilities, especially if one co-owner wants to do a 1031 exchange to defer capital gains taxes and others want to cash out of their real property holdings.
How to Report the Sale of Investment Property on Your Tax Return
Selling a rental property falls under different taxation rules than selling your primary home. When you sell a rental property, it is considered the sale of a business asset and treated differently. You must report the sale to the IRS, and it is critical to know what to report and where to report it.
Are Refinance Closing Costs Tax Deductible on Rental Property?
Among the attributes of real estate investing that appeal to investors are the tax advantages that investors can use. First, the investor can deduct the costs of owning, maintaining, and operating rental property. This ability helps to reduce the taxes you pay on income from rental property. Deductible expenses include mortgage interest, property taxes, maintenance and repairs (not improvements), marketing, and similar items.
What Is a Section 1411 Trade or Business?
In a recent blog, we explained the ins and outs of net investment income (NIT) and net investment income tax (NIIT). That blog pointed out that under 26 U.S. Code § 1411 - “Imposition of Tax,” NIIT is generally assessed on investment income and entities (i.e., estates, trusts, and individuals) with income higher than statutory threshold amounts.
What Is a Section 351 Transfer?
A transaction involving Section 351 of the Internal Revenue Code is a straightforward means for an individual to transfer property to a corporation in exchange for stock. This is without recognizing a gain or loss. Property transfers must be made in exchange for stock in the corporation. Immediately after the transfer, the transferor or transferors must then control the corporation that received the property. Control is defined as possessing at least eighty percent of voting rights and eighty percent of non-voting stock.
Are Legal Fees Tax-Deductible for Investment Property?
Before filing your annual tax return, you should always check what deductions and tax credits you may qualify for. There’s a good chance you incurred a few legal fees while acquiring your investment property or due to other business-related matters. If you sustain legal fees for your investment property, they may be tax-deductible.
What Is the Biggest Tax Shelter for Most Taxpayers?
Nobody likes paying Uncle Sam too much income in taxes. To reduce tax liabilities, taxpayers seek out tax shelters. A tax shelter reduces taxable income, resulting in a lower tax bill.
Can You Buy a Multifamily Property With an FHA Loan?
FHA loans are part of a federally backed program that enables people with a lower down payment, credit issues, or other financial concerns to buy a home. A common question we often hear is, “Can an FHA loan be used to buy a multi-family property?”
How to Write a Relinquishment Letter for a Property
When gifting property to an heir or relative, what is a simple or quick method of initiating the transaction? In real estate, there aren’t too many simple or quick things. There is a lot of paperwork and even various parties involved in completing specific transactions, and all of this can vary from state to state.
