Can One Member Of An LLC Do A 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.

Jun 18, 2024

What Is a 99-5 Transaction?

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.

Jun 17, 2024

What is a Distribution From a Retirement Plan?

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.

Jun 14, 2024

How To Become A 1031 Exchange Qualified Intermediary

How To Become A 1031 Exchange Qualified Intermediary

Jun 13, 2024

What Is a Section 1411 Adjustment and How Does it Work?

What Is a Section 1411 Adjustment and How Does it Work?

The income you make from passive investments on your trust or estate, minus any accrued expenses, is your Net Investment Income (NII). This number is added to your Adjusted Gross Income (AGI) and determines how you are taxed according to Section 1411 when tax season rolls around.

Jun 10, 2024

Can a Power of Attorney Change a Beneficiary?

Can a Power of Attorney Change a Beneficiary?

Naming a power of attorney is the process of choosing someone to act on your behalf when you cannot do it yourself.

Jun 8, 2024

How Can I Calculate a REIT Dividend?

How Can I Calculate a REIT Dividend?

For many investors, yield drives their investment choices. With public real estate investment trusts (REITs), yield is expressed in the form of quarterly or annual dividends that are a percentage of the REIT's current share price on a major stock exchange.

Jun 8, 2024

What Documents Do I Need for Capital Gains Tax?

As you probably know, the IRS recently received a significant funding boost from the Inflation Reduction Act. The IRS is hoping to increase the audit rate from its current sub-one percent performance, focusing on higher-income tax returns. Examining higher income returns makes sense, as does investigating returns with income from sources that aren’t easily verified. For example, the IRS reports that for ordinary wages and salary income, compliance with reporting and paying income tax is nearly perfect. In contrast, for income from harder-to-verify sources like small businesses, noncompliance may be as high as 55 percent.

Jun 7, 2024

What Are the Penalties for Paying Property Taxes Late?

What Are the Penalties for Paying Property Taxes Late?

Real estate properties can be valid long-term investments, but they also come with some major expenses - most notably, property taxes. Depending on where you live, you’ll usually have to pay property taxes once or twice a year. But what happens if you pay your property taxes late?

Jun 5, 2024

Is Painting a Capital Improvement?

Repainting a rental property does more than boost its curb appeal.

Jun 3, 2024

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