What Is a Section 1411 Trade or Business?
In a recent blog, we explained the ins and outs of net investment income (NIT) and net investment income tax (NIIT). That blog pointed out that under 26 U.S. Code § 1411 - “Imposition of Tax,” NIIT is generally assessed on investment income and entities (i.e., estates, trusts, and individuals) with income higher than statutory threshold amounts.
Can You Buy a Multifamily Property With an FHA Loan?
FHA loans are part of a federally backed program that enables people with a lower down payment, credit issues, or other financial concerns to buy a home. A common question we often hear is, “Can an FHA loan be used to buy a multi-family property?”
How to Write a Relinquishment Letter for a Property
When gifting property to an heir or relative, what is a simple or quick method of initiating the transaction? In real estate, there aren’t too many simple or quick things. There is a lot of paperwork and even various parties involved in completing specific transactions, and all of this can vary from state to state.
What Is a 99-5 Transaction?
A “99-5” refers to IRS Revenue Ruling 99-5, which discusses the federal income tax consequences of a transaction that involves changing a single-member LLC (limited liability corporation) into a partnership for federal tax purposes.
What Is a Section 1411 Adjustment and How Does it Work?
The income you make from passive investments on your trust or estate, minus any accrued expenses, is your Net Investment Income (NII). This number is added to your Adjusted Gross Income (AGI) and determines how you are taxed according to Section 1411 when tax season rolls around.
Can a Power of Attorney Change a Beneficiary?
Naming a power of attorney is the process of choosing someone to act on your behalf when you cannot do it yourself.
