What Is a Section 351 Transfer?

What is a Section 351 Transfer?

A transaction involving Section 351 of the Internal Revenue Code is a straightforward means for an individual to transfer property to a corporation in exchange for stock. This is without recognizing a gain or loss. Property transfers must be made in exchange for stock in the corporation. Immediately after the transfer, the transferor or transferors must then control the corporation that received the property. Control is defined as possessing at least eighty percent of voting rights and eighty percent of non-voting stock.

Jun 26, 2024

Are Legal Fees Tax-Deductible for Investment Property?

Are Legal Fees Tax-Deductible for Investment Property?

Before filing your annual tax return, you should always check what deductions and tax credits you may qualify for. There’s a good chance you incurred a few legal fees while acquiring your investment property or due to other business-related matters. If you sustain legal fees for your investment property, they may be tax-deductible.

Jun 25, 2024

What Is the Biggest Tax Shelter for Most Taxpayers?

What Is the Biggest Tax Shelter for Most Taxpayers?

Nobody likes paying Uncle Sam too much income in taxes. To reduce tax liabilities, taxpayers seek out tax shelters. A tax shelter reduces taxable income, resulting in a lower tax bill.

Jun 23, 2024

What Are the Penalties for Paying Property Taxes Late?

What Are the Penalties for Paying Property Taxes Late?

Real estate properties can be valid long-term investments, but they also come with some major expenses - most notably, property taxes. Depending on where you live, you’ll usually have to pay property taxes once or twice a year. But what happens if you pay your property taxes late?

Jun 5, 2024

Are HOA Fees Tax Deductible?

Are HOA Fees Tax Deductible?

If you’re looking at properties, you may notice some houses and condos for sale have HOA fees in their listings. You might be wondering if HOA fees are mandatory, how often they need to be paid, what the fees cover, and if you can deduct HOA fees from your taxes. HOA payments are an added cost to consider when making your monthly housing budget.

May 22, 2024

Can I Deduct Supplemental Property Tax?

Can I Deduct Supplemental Property Tax?

Whether you own your own home (and use it as a primary residence) or own investment properties, you understand one thing. Namely, state and local property taxes can generally be deducted from your federal income taxes. While the Tax Cuts and Jobs Act of 2017 caps those deductions at $10,000 (or $5,000 if you are married and filing separately), the deductions can be used to help offset your income. The result is a potentially lower tax burden.

May 18, 2024

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