What is the Main Purpose of Tenancy By the Entirety (TBE)?
Married couples and domestic partners have a choice among methods of structuring property agreements, depending on the state where they reside and their individual preferences. In most states, married couples can choose between joint tenancy or tenancy-in-common (TIC). This choice often extends to domestic partners as well. In nine states, married couples automatically own property as community property, and in about half of the states, Tenancy by Entirety (TBE) is also an available option. However, no community property states allow a TBE structure.
What is an Opportunity Zone Loan and How Do I Get One?
Congress created the Qualified Opportunity Zone (QOZ) program when it passed the 2017 Tax Cuts and Jobs Act (TCJA). The TCJA had several miscellaneous provisions, but the primary focus of Subchapter Z was the creation of the QOZ program. This new investment opportunity offers investors tax advantages for investing capital gains into economically challenged areas.
How Do I Report An Opportunity Zone on My Taxes?
Tax season is in full swing. This generally means investors have various questions about what needs to be reported—and how—to the IRS.
The Four Types of REITs
There are many different REIT structures, but we will cover four popular REIT types available to investors. Some you might not have heard of. The requirements to invest in these REITs span a wide range, meaning there’s something for everyone.
Who Cannot Use Installment Sales?
An installment sale can provide a useful tool to potentially defer taxes owed on the sale of capital assets. This is because, in most cases, taxes are owed on the actual funds received from the sale rather than the full amount. This assumes that the seller receives at least one payment after the tax year during which the sale occurs. It also requires the seller to fill out Form 6252 for each year of that payment.
Who Collects Capital Gains Tax?
When you make a profit on the sale of an asset, like stock, real estate or investments, you might be subject to capital gains tax. The capital gains tax is based on the amount of profit. The tax is collected by the federal or state government. The taxpayer is responsible for reporting the gain on their tax return and paying any tax owed.
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.
