How Can You Offset Passive Losses In Real Estate?
Ordinary income is taxed at some of the highest rates. This is income generated from a regular job. Wealthier clients often generate much of their income passively. However, some of it is still taxed at high ordinary income rates.
What Are The Differences Between Direct And Indirect Property Investments?
Investment strategies fall into two main categories: direct and indirect.
Is Step-Up In Basis Necessary?
When an heir inherits property at the owner's passing, a step-up in basis comes into play. Because of the step-up in basis, there are tax advantages for heirs. But do heirs have a choice, or can they elect out of a step-up in basis? Let's find out.
How Are Capital Gains Calculated On Sale Of Rental Property?
Understanding the calculation of capital gain when selling a rental property is crucial for smart financial planning. The first step in this calculation is to subtract the property's adjusted basis at the time of the sale from the total sales price. This must include any sales expenses such as legal fees and commissions. The resulting figure will be your capital gain on the sale. In order to provide a clear understanding of this process, we will explore this calculation using a hypothetical example in the following sections of our article.
Can I Buy a Property First and Then Do a 1031 Exchange?
Timing often plays an important role in the acquisition of commercial real estate, especially in competitive markets where properties may receive multiple bid offers from a pool of eager investors.
Can One Joint Tenant Mortgage Property?
Joint tenancy is a form of real estate property ownership. Two or more parties legally agree to own and manage the real estate assets through a joint tenant agreement. This legally binding agreement is formalized through a deed on which all parties are listed.
Do You Have to Replace the Debt in a 1031 Exchange?
When you’re involved in a 1031 exchange, you must invest the proceeds from the sale of your relinquished property into a replacement property (or properties) of greater or equal value. This is important if you want to potentially defer taxes on capital gains or depreciation recapture.
What is the Opportunity Zone 30-Month Rule?
Selling a highly appreciated investment property can bring a significant financial windfall, but long-term capital gains taxes can erode a hefty portion of your profits.
How to Use Equity in a Rental Property
There are a variety of reasons why people like owning their own homes. Homeownership can provide financial security, stability, potential tax benefits, and the ability to create a personalized living expression.
Can You 1031 Out of a DST?
DSTs (Delaware Statutory Trusts) have become popular vehicles for 1031 exchanging into. Investors only need to find the right DST rather than the right property, which can be difficult under strict time constraints.
