Can You Deduct Realtor Fees From Capital Gains?
We’ve written a lot about capital gains. We’ve explainedwhat they are, and when theymight trigger a taxable event. Although many of Realized’s previous blogs focus on capital gains when selling investment real estate or other capital assets, it’s also possible to generate capital gains from the sale of your primary residence or home.
DST Risks & Fees
It should come as no surprise that Delaware Statutory Trusts (DSTs) carry many of the same risks as a direct property investment. After all, the underlying asset driving the investment's performance is some type of real estate asset. From illiquidity to macroeconomic risks, such as rising interest rates, DSTs are exposed to various similar factors that may spell trouble for any real estate investment.
What are the Pros and Cons of a Deferred Sales Trust?
Executing a 1031 exchange is the primary strategy investors use to defer capital gains taxes on the sale of investment properties, but those taxes can also be kicked down the road by establishing a deferred sales trust (DST).
What Are The Steps in the Financial Planning Process?
Ensuring a secure financial future doesn’t occur by happenstance. It takes cautious planning, usually by an experienced financial planner, and rigorous adherence to predetermined financial goals.
What is a Baby REIT?
Ensuring a secure financial future doesn’t occur by happenstance. It takes cautious planning, usually by an experienced financial planner, and rigorous adherence to predetermined financial goals.
Can You Deduct Mortgage Interest on a Rental Property?
Owning a rental property can be profitable for real estate investors. An owner may be actively investing or passively investing, depending on the property. As with many investments, the ability to deduct certain expenses is an essential component of the financial equation. One expense that investors ask about is the deductibility of mortgage interest.
What Is the 2-Out-of-5-Year Rule?
When selling your primary residence, taxes still matter — and they can get complicated. Your home is a capital asset and, therefore, subject to capital gains tax. If your home appreciates in value, you might have to pay taxes on profit. However, there are exceptions.
Can You Avoid Paying Capital Gains Tax by Buying Another House?
Can you avoid capital gains tax when buying another house? The answer is nuanced. If you're selling an investment property and planning to reinvest the profits into another, it is possible to defer capital gains tax. Under IRS Section 1031, if you reinvest your gains in a 'like-kind' property within 180 days of the sale, you may qualify for a deferral of capital gains tax. However, to maintain compliance with the rules, keeping your funds in an escrow account managed by a Qualified Intermediary is often necessary until the new property is purchased.
1031 Exchange Timeline: A Guide to Rules and Process
When you sell a property and reinvest the proceeds into another property, you can defer capital gains taxes. We will look at 1031 exchange timelines, including what to think about when planning an exchange, and what to do during the identification period, 180-day exchange period, and post-exchange monitoring period.
