If you own investment or rental property, TurboTax will help you with deductions, depreciation, and getting your biggest possible refund.
Rental property losses can also be used to take advantage of certain deductions since passive activity losses are deductible. When other expenses are considered, such as the mortgage, repairs, property tax, and sometimes insurance, it is not always guaranteed that the rental fee will generate anet...
When you eventually sell your rental property, you could be on the hook for capital gains and depreciation recapture taxes. Many real estate investors defer these taxes by using a 1031 exchange, which lets you swap one investment property for another. According to the IRS, the exchanged propert...
There is a way to avoid depreciation recapture tax. If your client sells the rental property and wants to reinvest the proceeds from the sale into another investment real estate that is of equal or greater value, they may be able to take advantage of a1031 exchange. This strategy would ena...
tax-deferred exchange Tax-deferred income Tax-deferred income Tax-Deferred Incomes Tax-Deferred Retirement Plan Tax-deferred retirement plans tax-efficient fund Tax-efficient funds Tax-Equivalent Income Tax-Equivalent Incomes Tax-equivalent yield
Plan for a 1031 exchange. If you sell an asset and purchase a “like-kind” property, you may qualify to put off paying tax on the gain from the first property. The idea behind this rule is that you don’t realize a gain when you sell one asset to buy another. Note that as of ...
The election under s. 95(2)(f.11)(ii)(E) - to forego foreign accrual property losss (FAPL) amounts (derived from RAIFE) otherwise realized in a taxation year of a CFA of a Canadian taxpayer in exchange for non-inclusion of an equivalent amount in its RAIFE - can be beneficial where...
Transferring an unincorporated property rental business into a corporate structure aligns with both “reorganisation” and fitting in with “a new tax regime” brought about by S24. Even where “some element of artificiality” exists in arrangements, D 2.5.2 makes the distinction that acceptable no...
Paying taxes on a rental property doesn’t have to be confusing; all it takes is a little knowledge of how the IRS treats rental income.
Initiative 2109 aims to repeal the state capital gains tax, which is imposed annually on the sale or exchange of long-term Washington capital assets. The state capital gains tax applies to an individual with an adjusted annual Washington capital gain above $250,000.…The money goes to measures...