Welcome to the exciting world of K-1 forms! Okay, let’s be honest, K-1 forms may not be the most thrilling topic, but understanding them can save you some serious tax headaches. In this blog post, we’ll break down everything you
A K-1 form is a tax document used to report income, deductions, and credits for partners in a partnership, shareholders in an S-corporation, or members of a limited liability company (LLC). Here are the steps to use a K-1 for
A sale followed by a purchase does not qualify as a 1031 Exchange. Rather a process of intention needs to be in place to qualify for an exchange to count for the tax benefits. The transaction must be treated as
Excess Funds The identification period of a 1031 exchange refers to the first 45-days when a taxpayer identifies property they would like to acquire as a replacement to their relinquished property. It is common for a taxpayer to identify more
It is quite common for clients to call a 1031 exchange company with questions regarding exchanges of their former or future principal residences or vacation homes. After all, if you can have a rental property with some side benefits, it
Selling a property is a significant decision that involves numerous considerations for both the buyer and the seller. While the traditional method of immediate payment is prevalent, some sellers opt for more flexible arrangements. One such option gaining popularity is
In order to defer ALL capital gains and depreciation recapture taxes from the sale of the Relinquished Property the taxpayer must pay an equal or higher price for the Replacement Property than the Relinquished Property was sold. Should any debt
If you’re a real estate agent working on your first 1031 exchange, you might be feeling a little intimidated. After all, this process can be complex and involves many moving parts. However, with some preparation and a good understanding of
Since 1991, IRC § 1031 has required the use of an impartial third party to hold the proceeds from the Relinquished Property sale until the close on the Replacement Property. This third party is known as a qualified intermediary. Not
Below is a simple guide that can help determine if your situation qualifies for a 1031 exchange and if a 1031 exchange seems like the best option for your upcoming real estate transaction. Do you, or your entity, pay US
How to “use” Depreciation: Basic Definition: Depreciation is a method used to allocate the cost of a tangible asset (like a building, machine, or vehicle) over its useful life. Since assets wear out or become obsolete over time, they lose
How to “use” Amortization: Basic Definition: Amortization is a process of spreading out a cost or payment over a period of time. It’s a bit like depreciation, but while depreciation typically refers to spreading out the cost of tangible assets
