Are Distributions from a Qualified Opportunity Fund Taxable?
While qualified opportunity funds (QOFs) offer a number of tax benefits, investors understandably have reason to be concerned about the tax implications of distributions from these funds. In this article, we’ll take a closer look at whether distributions from a QOF are taxable and how specifically they are taxed.
How to Report a Section 121 Exclusion
Section 121 of the Internal Revenue Code allows taxpayers to exclude from income some of the gains they have enjoyed due to the increase in value of a primary residence. The IRS rules are meant to support the exclusion by homeowners while denying it in the case of an investment property. To that end, taxpayers claiming the exclusion must satisfy both an ownership and use test.
Do I Have to File a 1099-R Form?
You will likely get a 1099-R form If you received a distribution from a retirement plan or a similar account like an annuity, pension, or insurance contract. The plan administrator is responsible for filing the 1099-R with the IRS and any required state or local governments. As the taxpayer you will also report the distribution on your income taxes.
What is an Inter-Vivos Trust?
An inter-vivos trust is a type of trust created during the life of the grantor, or the person who establishes the trust, as opposed to a trust created through a will after the grantor’s death.
What Does it Mean When a Property Is Under Contract?
When a property is listed for sale, potential buyers make an offer with their best price and any contingencies. If the seller accepts the offer, the property is considered “under contract.” The buyer and seller are now in a legally binding agreement.
Which States Do Not Have an Estate Tax?
When someone passes away, their assets might be transferred to beneficiaries. If over a certain amount, the transferred assets can be subject to a federal inheritance tax. And, sometimes, can incur an estate tax at the state level.
What is an Operating Expense Ratio (OER)?
Operating Expense Ratio (OER) is a financial metric used to evaluate the operational efficiency of a business. It measures the proportion of operating expenses incurred by a company in relation to its revenue.
How Much Capital Loss Can You Deduct?
An important part of selling assets involves how much you might gain or lose as a result. Many Realized blogs discuss capital gains (and resulting capital gains taxes) in great detail.
What Does Adjusted Basis Mean on Form 8824?
The adjusted basis of an investment property is the basis after subtracting expenses and adding improvement-related costs. Form 8824 is used to file like-kind exchanges. The basis is a requirement for form 8824. The basis of an investment property is a little different than the basis used for properties in a 1031 exchange. In this article, we’ll look at what a basis means for form 8824.
What is a Related Party Exchange?
As we’ve mentioned in numerous blogs, 1031 exchanges come with many rules and regulations. These include in-stone deadlines, the value of relinquished and replacement properties, and eligible properties.
