What Are Realized Losses?

Gains and losses are part of life, certainly an inevitable aspect of investing in real estate (or anything else). How investors manage those gains and losses is part of the strategy. When an asset is worth more than you paid for it (your basis), you have a gain, and when it is worth less than your basis, you have a loss. However, that gain or loss is unrealized unless you dispose of the asset. Also, gains and losses are categorized by the IRS as short- or long-term.

When Are Capital Gains Realized?

When you sell a stock at a higher price than you paid for it, a profit is generated. In most cases, that profit is taxed. Specifically, if the profit is a realized gain, it is taxed. But when exactly does a profit become a realized gain?

Are Unrealized Gains Taxable?

Unrealized and realized capital gains are treated very differently on your annual tax return.

At What Income Level Do You Not Have to Pay Capital Gains Taxes?

Real estate investors know that capital gains taxes can take a pretty hefty bite out of the profits generated from the sale of their investment assets – that’s why many of them kick the tax can down the road by completing 1031 exchanges and deferring this tax liability.

Strategies for Deferring and Reducing Capital Gains, Part 2 [Webinar Recap]

The Qualified Opportunity Zone (QOZ) program was created by the Tax Cuts and Jobs Act of 2017 to encourage long-term investment in designated communities known as Qualified Opportunity Zones. QOZs are also required to be either new developments or substantial renovations must be made to existing buildings.

Strategies for Deferring and Reducing Capital Gains [Webinar Recap]

Enacted in 1921, IRC 1031 allows investors to defer all federal and state capital gains and depreciation recapture taxes when selling property by reinvesting, or “exchanging” their equity into a “like-kind” replacement property. Investors can use this strategy in hopes of building wealth on a tax-deferred basis by reinvesting 100% of that equity.

Ways to Manage Capital Gains Tax on Rental Property

Owning rental property can be a good investment with tax advantages and the potential for passive income. If your real estate appreciates in value while you own it, you may be subject to paying taxes when you decide to dispose of the property.

Ways to Potentially Defer Capital Gains Tax on Stocks

Raise your hand, if you can relate to the following scenario.

How Long Can You Defer Capital Gains Tax?

Capital gains (or losses) are important to understand when it comes to capital asset investments. Understanding what they are, and how they might be taxed, can play an important part in your overall strategy.

What is the Capital Gains Tax on Rental Property, and When Do You Pay It?

Along with the potential benefits of rental property ownership, is one downside. This involves annual taxes owed to the IRS, and encompasses both the rental income you might earn during your time of ownership, and the profit resulting from the sale of that property -- also known as capital gains.

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