Tax

What is the Tax Rate for Depreciation Recapture?

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While depreciation is a great deduction for real estate investors, it isn’t free. Eventually, the IRS will have to be paid back, which happens when the property is sold. That’s where depreciation recapture comes in. Investors should be ...

Sep 23, 2023

How Much of a Farm Loss is Tax Deductible?

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Farm losses often go hand-in-hand with farm ownership. Figuring out how much of a farm loss is tax deductible can be as difficult as raising corn in Death Valley.

Sep 13, 2023

Why Are Rental Losses Disallowed?

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Real estate investors know that income-generating investment properties aren’t always in the black. Losses can be common on rental properties, especially in years where you have to fund capital expenditures for major repairs or ...

Sep 11, 2023

How to Get a 1099-DIV Form

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If you’ve invested in mutual funds, stocks, or other dividend-paying securities, it’s important to understand how your earnings are reported to the IRS. The 1099-DIV form is a tax document that details the dividends and capital gains ...

Sep 10, 2023

Who Receives a 1099-MISC Form?

The 1099-MISC form is an important tax document used to report various types of income that are not covered by W-2 forms. Independent contractors, recipients of rents and royalties, award and prize winners, and individuals with miscellaneous income may receive this form. It is vital for both recipients and issuers of the 1099-MISC form to understand the reporting requirements and deadlines to ensure compliance with IRS regulations.

Sep 3, 2023

Do Losses on Rental Property Carry Forward?

As an owner of, or investor in rental property, you could be in a position to take advantage of many deductions in addition to potentially receiving cash flow. Prospective tax benefits are one reason why many investors turn to rental real estate ownership.

Aug 27, 2023

What Happens to An Installment Sale at Death?

As we’ve mentioned in previous blogs, owning real estate as an investment can generate many benefits. And as we’ve also mentioned in previous blogs, selling appreciated real estate can trigger capital gains and depreciation recapture taxes. The sale could also lead to a higher income bracket, meaning more taxes.

Aug 19, 2023

How Can You Offset Passive Losses In Real Estate?

Ordinary income is taxed at some of the highest rates. This is income generated from a regular job. Wealthier clients often generate much of their income passively. However, some of it is still taxed at high ordinary income rates.

Aug 17, 2023

Is Step-Up In Basis Necessary?

When an heir inherits property at the owner's passing, a step-up in basis comes into play. Because of the step-up in basis, there are tax advantages for heirs. But do heirs have a choice, or can they elect out of a step-up in basis? Let's find out.

Aug 15, 2023

Can Rental Losses Exceed Rental Income?

Anyone who runs a business knows that certain expenses can be deducted from income, thereby reducing taxable income. However, things can get a bit murky if the business incurs an overall loss. This is especially true for those managing rentals. Let’s break down what happens when a real estate business has a loss for the year.

Aug 9, 2023

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Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.

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