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.
Can You Live in an Opportunity Zone?
Opportunity Zones were created as part of the Tax Cut and Jobs Act of 2017.
How Financial Advisors Are Helping Clients Unlock Real Estate Assets
With the current volatility and uncertainty of equity markets, some of your clients may be considering or already hold alternative investments, like collectibles, commodities, or real estate.
What is Joint Tenancy With Right of Survivorship?
Joint ownership of real property can be formed in a few different kinds of legal structures depending on the owners’ desires.
Can You Negotiate a Triple Net Lease?
Triple net leases may be appealing to some real estate investors because the tenant agrees to do most of the heavy lifting under this type of lease structure.
