Understanding the Advantages and Drawbacks of a Tax-Deferred Exchange

A 1031 exchange can be helpful if you’re a real estate investor. When conducted properly, the process helps defer capital gains taxes and depreciation recapture on the sale of investment or business-use real estate. This can mean more immediate liquidity for the potential for long-term wealth creation.
Do You Have To Pay Capital Gains Tax Immediately?

Capital gains occur when you sell your investment real estate at a price over what you paid. While generating profit from asset sales is great, you must also pay taxes on any recognized gain. You don’t have to pay taxes immediately—generally, you’ll pay when you file your annual tax return for the year you sell your property.
How To Avoid Or Reduce Capital Gains Tax On A Home Sale

After selling a house, you may be feeling optimistic about the profit you’ve just made. There are many investment opportunities on the horizon, and you’re planning to use all of the home sale proceeds for promising prospects. Unfortunately, there is still one more thing that you’ll need to address before you can start investing: capital gains taxes.
Capitalization Rate: What Cap Rate Is & How It Works

Real estate investing requires an understanding of various data and numbers to increase the chances of a successful venture. Among the many types of financial metrics, capitalization rate (or cap rate) is an important one. This value determines the rate of return for a given real estate investment. Understanding the cap rate is a factor that can help investors like you predict the profitability of the asset, among other useful applications.
Capital Gains Tax: What It Is, How It Works & Rules To Consider

You’ve finally done it — you’ve sold an asset that provided substantial profits. Before you start celebrating, however, there is one more question you have to keep in mind: how much of your hard-earned money do you actually get to keep?
What Can Be Deducted from Capital Gains?

Capital gains happen after the fact. They are the result of deductions already made. Reducing capital gains must start before arriving at a capital gains figure. In this article, we’ll see how to reduce capital gains, which will, in turn, reduce taxable income.