Is Deferred Income Tax a Current Liability?
Determining owed income tax can be a straightforward process. If you’re an employed individual, you receive a W-2 form, then file it with a Form 1040 to the IRS by April 15 (most years).
How Does Opportunity Zone Financing Work?
Since its introduction as part of the Tax Cuts and Jobs act of 2017, the Opportunity Zone Program has generated a great deal of press (some good, some bad). It’s also generated interest among investors, especially those interested in economic revitalization.
Can I Deduct Short-Term Capital Losses?
Capital losses occur when you sell a capital asset (think stocks, bonds, or investment real estate) for less than what you bought it. The IRS does allow you to take that capital loss and apply it on a dollar-for-dollar basis against capital gains. The limit on this deduction is $3,000 (if married, filing jointly) or $1,500 (if you’re a single filer).
Is Interest Taxed as Ordinary Income?
With tax season almost around the corner, it’s time to figure out what you might owe (or not) to the IRS on your 2022 proceeds. Those earnings might include wages and salaries, income received from rental properties, fund distributions, profit from an investment property sale, or interest received on investments.
1031 vs 721 Exchange: What is the Difference?
Mention the word “real estate exchange,” and what might come to mind is the 1031 exchange. This process falls under 26 U.S. Code § 1031 – “Exchange of Real Property Held for Productive Use or Investment.” The goal here is to help the investor “swap” a relinquished real estate asset into a replacement one. In this way, both depreciation capture and capital gains taxes can be deferred.
How are Triple Net (NNN) Charges Calculated?
Commercial property leases can take numerous forms, from gross to absolute net. Many of the particulars are standard within each type, but there are variations. Therefore, always carefully review a lease's terms to ensure you aren't surprised by what you are responsible for paying.
How Do House Flippers Avoid Capital Gains Tax?
House flipping is a term that typically refers to the practice of buying and quickly reselling homes for profit. In many cases, the flipper purchases a residence that needs work, makes the necessary upgrades and repairs, and then sells the property for more than they invested. According to ATTOM Data (a provider of nationwide property data), the average profit for a house flip in 2022 was $70,000. That’s a tidy profit for what is often a short-term project.
How Does an Improvement Exchange Work?
There’s been plenty written about the 26 U.S. Code § 1031—Exchange of Real Property Held for Productive Use or Investment. When used correctly, the like-kind exchange allows you to swap your relinquished property into a replacement one of greater or equal value. This allows you to defer capital gains taxes on the relinquished property.
How Do Opportunity Zones Make Money?
The information and write-ups about the Opportunity Zone program tend to focus on two things:
An Overview of REITs
REITs allow investors to get involved with real estate investing passively. There’s no property management as is often required with real property. An investor’s equity in a REIT turns into fractional ownership of real estate. There are many types of REITs to choose from. In this article, we’ll give an overview of several different types of REITs.
