What is a Baby REIT?

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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.

Feb 2, 2024

Can You Deduct Mortgage Interest on a Rental Property?

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.

Feb 1, 2024

What Is the 2-Out-of-5-Year Rule?

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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.

Jan 31, 2024

Can You Avoid Paying Capital Gains Tax by Buying Another House?

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.

Jan 30, 2024

1031 Exchange Timeline: A Guide to Rules and Process

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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.

Jan 29, 2024

Does Tenancy By The Entirety (TBE) Offer Protection From Creditors?

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Here’s an interesting scenario.

Jan 28, 2024

Drop and Swap 1031 Exchange in California: How to Navigate the Process

Drop & Swap 1031 Exchange Properties

California, especially Silicon Valley, has long been regarded as an international hub for business. The Golden State’s economy is the largest in the U.S. and outranks all but a handful of foreign nations.

Jan 27, 2024

Do REIT ETFs Pay Dividends?

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Real estate investment trusts (REITs) are companies that own and operate income-generating commercial real estate properties. Most REITs are publicly traded, which provides individual investors access to dividends derived from real estate without the burden of acquiring, managing, or obtaining financing for investment properties.

Jan 26, 2024

How to Report the Sale of Inherited Property On a Tax Return

How to Report the Sale of Inherited Property On a Tax Return

Anyone who’s dealt with inherited property likely knows how important the step-up in basis can be for real estate transferred to heirs upon the owner’s death.

Jan 25, 2024

What Is A Realty Trust?

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Many different trusts are available that can hold (and transfer) personal and real property.

Jan 24, 2024

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