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.
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.
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.
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.
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?
Is Painting a Capital Improvement?
Repainting a rental property does more than boost its curb appeal.
What Is the Rule of 69 Percent In Real Estate Investing?
Investors love to use rules to help them predict outcomes. For example, there is a one-percent rule (a one-percent increase in interest rates equates to ten percent less you can borrow to keep the same payment), a two-percent rule (the percentage of a home’s cost that you should be asking for in monthly rent), and more. Some of these rules can help estimate potential results, but others are outdated or possibly never really held much value.
What Is the 2% Rule in Real Estate Investing?
Unlike some other famous maxims in real estate investing (like the seventy percent rule, for example), the two percent rule is widely discredited in most U.S. metropolitan areas. The rule holds that the rental amount should equal two percent of the property's purchase price. By that calculation, if you purchase a house for $100,000, the monthly rent should be $2,000. That seems unrealistic at first glance and becomes even less likely the deeper you dig in.
Can You Use Money From a 1031 Exchange To Pay Off a Mortgage?
Real estate investors can defer capital gains on the sale of an investment property by purchasing a replacement asset as part of a 1031 exchange.
