Mom and Dad can use a 1031 exchange and help the kids buy a new home. We've posted a new Shared Equity Finance Agreement article in our Exchange Library. … [Read more...]
What is the Tax Impact of Sale?
What is the Purpose of this Paper? We get asked many times what will be the tax impact if I sell ? The purpose of this paper is to answer that question and help property owners decide what they should do. With the many changes that took place in 2013, including capital gain tax rates, the NII and 3.8% Medicare tax, many investors and business … [Read more...]
Net Investment Income (NII) and 1031 Exchange
Section 1031 exchanges are not included in net investment income ( NII ). The proposed IRS regulations to implement IRC Section 1411 were circulated for comment in December 2012. It was clearly stated in the prologue to the proposed regulations that deferred gain from a 1031 exchange “was not recognized for purposes of determining net investment … [Read more...]
Application of 20% Capital Gain Rate in 2013
Potential sellers of residential rental properties need to be very aware that the capital gain from such a sale may surprisingly put them in a higher tax bracket and have part of their capital gain taxed at 20%. There has been little written on the application of the 2013 Capital Gain rates. Until the IRS publishes a 2013 Schedule D Capital Gain … [Read more...]
