What is the Capital Gains Tax Rate on Jewelry?
Picture this. You own a fine piece of jewelry, a ring. Perhaps this ring has been in your family for a while. Your insurance company valued the ring at $4,000.
What is the Difference Between Raw Land and Unimproved Land?
Is there any difference between raw and unimproved land? They sound like the same thing. Some people use these terms interchangeably. But yes, there are differences. Land types can be broken into several categories. Land lenders mostly use those categories.
Are Trust Funds Subject to Inheritance Tax?
Taxpayers may establish trust funds to pursue several goals, including orderly distribution of assets, tax management, and a desire to provide income to beneficiaries. Often, tax management is a priority. Keep in mind that federal estate taxes only apply when an estate's value exceeds $12.06 million. Very few estates meet that threshold. However, the tax rate imposed on amounts over the threshold is forty percent, which can take a hefty bite out of an inheritance.
What is a Section 121 Exclusion?
One of the motivators for buying real estate is that it tends to appreciate. Of course, this result isn't guaranteed, and there are notable periods when real estate values have dropped. However, buying real estate is a good bet over time, and you may earn significant increases in value. This potential outcome applies to both investment property and personal use assets.
Does a 1033 Exchange Require a Qualified Intermediary?
When hurricane Ian hit southwest Florida in late September of 2022, it destroyed more than 5,000 homes in Lee County and severely damaged another 13,000 residences.1 The damage wrought by Ian left thousands of homeowners pondering their next steps. Homeowners and investors who owned condemned properties may be able to complete a 1033 exchange to replace homes that were destroyed or severely damaged by the hurricane’s wrath.
Can You Sell a House that is Under Construction?
Real estate investments are often attractive to buyers as a potential means to wealth accumulation, and residential dwellings also have the emotional appeal offered by a place to call home. Owning your home is part of the American dream, and many extend the vision by turning a property into income. Still, real estate is volatile and subject to ups and downs.
Can Non-Accredited Investors Invest in Opportunity Zone Funds?
The main impetus of the opportunity zone program is to funnel financial resources into federally designated, lower-income qualified opportunity zones (QOZs) to help with economic revitalization and job creation. The irony of the program is that most opportunity zone funds are open only to accredited investors.
What is a Tax Deferral?
According to the Merriam-Webster dictionary, the word “deferral” is the act of delaying or postponement. Accordingly, deferring taxes means pushing the tax payment to a future date. Using various techniques, taxpayers can defer taxes on income, earnings, and capital gains. Let's take a look at some of the standard options.
Does Raw Land Depreciate?
Depreciation is an income tax deduction that the IRS allows investors to take to recover the cost of the property. It is one of the tax advantages of owning investment real estate, although depreciation also applies to other business assets, like machinery. The depreciation process provides recompense for the investment cost during the asset’s gradual loss of utility. Whether you own an office building, a retail property, or a residential rental, you can use the depreciation process to recover some of the investment over time.
Is Capital Gains Yield the Same as Growth Rate?
Successful investing often requires a host of well-rounded skills, and they are ever-changing. The ability to gather knowledge and perform robust fundamental analysis on prospective investments doesn’t require any particular set of skills, though – yet these tools can help you better understand key metrics such as risk, return, and yield while forming stronger investment strategies.
