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.
What Is An Example of a Net Lease?
Net leases generally are for single-tenant properties. They are often associated with office buildings, warehouses, and retail spaces. Retail properties probably utilize net leases more than any other category. These include fast food restaurants, convenience stores, gas stations, and big box stores.
What is an Installment Sales Trust (IST)?
Are you tired of paying taxes on gains that haven't even hit your bank account yet? Because of the Tax Reform Act of 1986, a new concept called "installment sales reporting" required taxpayers to report the entire gain from the sale of assets in the year of sale, even if they haven't received full payment for the assets.
What is Effective Interest Rate?
The effective interest rate (EIR) is what you might call the practical rate or the rate that you'll pay on borrowed money. A bank or auto loan lender might quote different types of interest rates. But only the effective interest rate really matters to your wallet and helps you make an informed decision about purchases (when purchasing with a loan). It also provides an easy method for comparing different loan rates.
Is Money Received From an Eminent Domain Taxable?
One bright, sunny day you might hear a knock on the door. When you answer it, the local mail man hands you a certified letter, requiring your signature. You sign, take the letter and rip it open.
What Happens if I Don't Report Capital Gains?
To address the question of what can happen if a taxpayer fails to report capital gains, it will help if we start by clarifying the terminology. A capital gain is the difference between what you pay to acquire something (an asset) and what you sell it for. Assets can be tangible, like stocks, gold, and property, or intangible, like copyrights or patents.
How Does a 1034 Exchange Work?
Once upon a time, before the late 1990s, you could sell your personal residence for a profit. The issue, however, was that the capital gains on that sale might automatically trigger a taxable event in the form of capital gains taxes. Unlike today, those tax rates were high, averaging 28%.
How to Avoid Capital Gains Tax When Selling Farmland
Accountants and finance professionals view farmland differently than other capital assets. For example, a retail strip center and undeveloped farmland are both real estate. But their purposes and uses can differ.
How To Minimize Capital Gains Tax
There can be significant advantages to owning investment real estate, including reducing taxable income with business expenses, depreciation, and amortization. Unfortunately, what the IRS gives, it also eventually takes back. In this article, we’ll discuss capital gains tax, how to calculate potential capital gains tax liability, and ways commercial real estate investors can minimize the impact of tax on capital gains.
Can You Use Capital Gains to Pay Off Debt?
There’s nothing wrong with using profits to pay down debt. That simple transaction reduces leverage. But is it possible to pay down debt using capital gains, and are there any tax advantages to this tactic?
