Can a Joint Tenant Sell or Transfer Their Interest?
If you are buying real estate with one or more other people, you may structure the ownership as either Tenants-In-Common (TIC) or as a joint tenancy. Small groups purchasing real estate frequently employ these ownership structures, and the arrangements are often confused with each other due to the similarity in names. Therefore, let's quickly review the similarities and differences between these two ownership models.
5 Ways To Manage Capital Gains Tax
Is it possible to truly avoid capital gains tax? If, by avoid, you mean defer and reduce, then the answer is a definite yes. If structured correctly, some capital gains can completely avoid taxes. At some point, the IRS will come looking for their share. When the time comes, there are a few ways to hand over less and, in some cases, none at all. Here are five of them.
How Early Can You Lock in a Mortgage Rate?
The interest rate on your mortgage can make a significant difference in the monthly payment—just look at how quickly housing market activity and prices dropped when rates started rising last year. Buyers at the beginning of 2022 enjoyed rates as low as 3 percent, but by November, the average 30-year fixed rate had spiked to over 7 percent. Rates for high-quality borrowers have eased a bit in the last few months but are still hovering over 6 percent. It’s anyone’s guess where they will head next, which means many nervous homebuyers are hoping to lock in a rate when they find the house they want to buy. Locking the rate means that the borrower is eligible for the specified interest rate even if rates go up as long as they close the loan within the lock period.
Can You Do An Installment Sale to a Related Party?
Installment sales have many advantages for real estate investors. They have tax deferment, flexibility for the buyer, a stream of payments to the seller, and lower taxable gains. But what if you want to arrange an installment sale to a family member? Or a business that you own a majority stake in?
How Are Capital Gains Taxed?
Calculating exactly how your capital gains are taxed is not always so simple. There are many complicated rules and stipulations to keep in mind, and it can get confusing very quickly. We've broken down the taxation of your capital here.
What is Ordinary Business Income?
For individuals and companies, categorizing income as ordinary instead of as a long-term capital gain may change the effective tax rate for that income. For most business types and individual taxpayers, the tax rate applied to long-term capital gains is lower than the rate used for ordinary income. Ordinary income is any income earned through operations. As with individuals, business income obtained from the disposition of a capital asset held for more than a year is taxed at the lower long-term capital gains rate.
Are REIT Dividends Taxed as Ordinary Income?
REITs can provide a low capital entry point for those who want to get involved with real estate investing. They can provide dividends and potential capital appreciation. However, taxation is quite different between REITs and real property. Do REIT dividends offer any of the tax benefits that real property income provides, or is it all taxed as ordinary income?
Can a Joint Tenant Force the Sale of a Property?
One of the common ways for people to hold title to property as a group is to buy it as joint tenants. In many states, joint tenancy is frequently employed by married couples and by business partners investing together. Joint tenants have equal ownership rights and responsibilities. A critical provision of joint tenancy is the right of survivorship—when one owner dies, the others inherit the deceased partner’s share. If there is more than one survivor, all would equally share the portion owned by the deceased.
A Wealth Management Niche Your Competitors Probably Haven't Considered
Developing unique value propositions can be difficult for financial advisors. Most advisors promise clients the same benefits, which can make it hard for advisors to showcase their value to investors and stand out in a crowded field.1
Are Capital Gains Distributions Taxed as Ordinary Income?
Investors who buy and sell real estate are likely well versed in capital gains, which are the profits derived from the sale of investment properties that commanded a higher price than your original basis.
