Is There a Lifetime Limit on Capital Gains?
Capital gains are increases in the value of an asset relative to its basis. The capital gains tax is an assessment on that gain that applies when the asset is sold. So while an investor may watch and enjoy the appreciation in a capital asset, the tax doesn’t apply until they “realize” the gain—which occurs when they dispose of the investment.
Does a Step-Up in Basis Eliminate Depreciation Recapture?
Inheriting real estate can be a significant financial windfall for beneficiaries. Depending on how it’s received, though, inherited real property can come with some important financial considerations.
Are Capital Gains and Income Tax the Same?
You can save a lot of time and effort at tax time by understanding the different types of income you’ll have to report on your Form 1040.
How Can Debt Impact Your Qualified Opportunity Zone (QOZ) Investment?
Like traditional real estate investment vehicles, Qualified Opportunity Zone Funds (QOZF) may strategically use financing to help maximize returns. Using debt or leverage has its pros and cons; it has the first priority of payment, it magnifies returns in both directions, and it also provides income tax shelter. All else equal, more debt offers a higher risk/return ratio for investors.
What is Capital Gains Deferral?
Selling a real estate investment property can be a lucrative wealth-building opportunity. However, you should consider how capital gains tax may affect your decisions when selling property. Fortunately, a few strategies are available for deferring or avoiding capital gains taxes.
Are Roth IRA Distributions Taxable at the State Level?
Before we delve into the question, let's briefly review the differences between a Traditional IRA and a Roth IRA. That comparison can provide a foundation for the topic.
Are Capital Gains Forgiven at Death?
Capital gains are a complex topic governed by an array of rules and exceptions. Knowing how to navigate the protocols and options is vital for investors seeking to manage their taxes. Capital gains are the increase in value of a capital asset, which can be sorted into short-term and long-term.
What Is The Opportunity Zone 10-year Rule?
Since its introduction five years ago, the Qualified Opportunity Zone program has been described as an economic revitalization program, as well as one offering potential tax-deferral investment opportunities. But from an investment standpoint, some might question whether it’s worthwhile investing in a program that has an end date of Dec. 31, 2026.
What Assets Do Not Get a Step-Up in Basis?
Passing assets on to family is a great way to transition wealth. But there are caveats, which mainly include large tax bills. If not done right, beneficiaries can be left with a tax bill they cannot pay. That's why proper estate planning is essential.
Can I 1031 Into A Qualified Opportunity Zone?
The 26 U.S. Code § 1031 - “Exchange of real property held for productive use or investment,” aka the “1031 Exchange,” aka the “like-kind exchange” has been around for close to a century. Originally initiated as a tool to help farmers better understand land borders, the code allows investors to defer real estate capital gains taxes, by allowing them to “exchange” property into other like-kind investments. Meanwhile, the Qualified Opportunity Zone Program (QOZP) was passed as part of the Tax Cuts and Jobs Act of 2017. The program’s purpose is to encourage investment of capital gains from the sale of assets into federally designated lower-income communities.
