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.
Who Pays Capital Gains Tax on a Deceased Estate?
Investors want to preserve and enhance the value of the assets they can distribute to their heirs. When a person dies, their assets typically enter probate for distribution. An asset's value is determined before disposition during probate. That's one reason why the step-up provision of capital gains taxation is an integral aspect of estate planning.
How To Record A 1031 Exchange
Recording a 1031 exchange properly is crucial. This involves filling out IRS Form 8824 and submitting it with your federal income tax return. Each individual 1031 exchange you undertake within a tax year requires a separate Form 8824 to be accurately recorded. This form provides a detailed account of both the relinquished and acquired properties involved in the transaction. By diligently recording this information, you ensure the IRS knows the capital gains deferred through your 1031 exchange.
Can One Member Of An LLC Do A 1031 Exchange?
In the world of business ownership and property investments, there are several different structures and tools that you can use. For instance, you can own a business as a sole proprietor, you can have co-owners, and you can all be in business together as an LLC. In an LLC, you and the people you own the business with have a legal separation of your personal finances and the business’s finances. This ensures that you are not at risk of personal financial ruin if the business doesn’t work out as you planned.
What Is a 99-5 Transaction?
A “99-5” refers to IRS Revenue Ruling 99-5, which discusses the federal income tax consequences of a transaction that involves changing a single-member LLC (limited liability corporation) into a partnership for federal tax purposes.
What is a Distribution From a Retirement Plan?
A distribution from a retirement plan occurs when the account owner withdraws money from the retirement account. Depending on the retirement plan, the IRS can consider these distributions taxable income.
