| |
taxes: Re-Post - The Difference Between the Mortgage Forgiveness Debt Relief Act of 2007 and State Anti-Deficiency Laws - 06/26/08 09:23 PM
A week or so ago, I wrote a post detailing the Mortgage Forgiveness Debt Relief Act of 2007 (MFDRA) because I'd read a number of posts where the authors confused the MFDRA with their state's anti-deficiency laws. That post was lost when AR timed out on me when I went to publish the post.
If you want to get the information from the horse's mouth (the IRS) here's a link to the IRS publication regarding the MFDRA. I'm summarizing it below.
The main difference between MFDRA is who is providing the protection. MFDRA is federal law and applies to your federal … (12 comments)
|
taxes: 1031 Exchanges and The Serial Flipper - 04/30/08 03:07 PM
To Flip or Not To Flip
This post was inspired by a comment I made on JL's Blog post about flipping property as an investment strategy. As he pointed out many first time real estate investors are entering the market inspired by shows like "Flip This House." What a lot of these shows don't show is that flipping can be RISKY. . .
AND flipping can often be a gamble, akin to flipping a coin. . .
As with any investment, often the greater the risk, the greater the potential pay off. . .
Here are a couple of things to keep in mind if you think … (6 comments)
|
taxes: 1031 Exchanges - Calculating Capital Gain - 04/17/08 05:05 PM
Now that you've seen how to calculate the Net Adjusted Basis, you are ready to begin calculating the capital the seller may recognize on their taxes if they do not do a 1031 exchange.
You will take the current sale price, subtract the net adjusted basis, then subtract the closing costs. This will give you a rough idea of the capital gain liability. From there you can get a rough idea of the capital gain tax for which the invest may be liable. Again, as I beat this horse to death, investors are STRONGLY advised to seek the guidance of their tax advisors … (0 comments)
|
taxes: 1031 Exchanges - WHAT THE HECK IS NET ADJUSTED BASIS? - 04/17/08 04:52 PM
After reading some of the comments from "To Exchange or Not to Exchange? That is the question," I thought it would be helpful to post information about NET ADJUSTED BASIS.
The simplified way of determining whether there is a potential capital gain on the sale of property is to subtract the original purchase price from the current sale price:
Sale Price - Original Purchase Price= Very Rough Estimate of Capital Gain
However, the more precise way to determine capital gain is to calculate the NET ADJUSTED BASIS, which takes into account capital improvements, depreciation and any deferred capital gain (if the property was originally … (0 comments)
|
taxes: 1031 Exchanges - To Exchange or Not to Exchange? That is the question. - 04/17/08 12:41 PM
AN EXCHANGE MAY STILL BE NECESSARY IN A DECLINING MARKET
IS AN EXCHANGE NECESSARY WHEN PROPERTY PRICES ARE DECLINING?
Generally, if the value of property at the time of sale is lower than the purchase there will not be a capital gain issue and hence, no need for a 1031 exchange to defer the capital gain tax.
However, if the taxpayer purchased the property (that is currently being sold) AND it was purchased as replacement property in a 1031 exchange, there may be capital gain depending on how much capital gain was deferred in the previous 1031 exchange. This may occur because the deferred … (4 comments)
|
taxes: 1031 Exchanges - Time Well Spent? - 04/16/08 01:58 PM
AVERAGE AMERICANS SPENT 26.5 HOURS PREPARING TAXES
It took the average American more than 26.5 hours to prepare their taxes this year. This is an increase from 25.4 hours three years ago. It costs Americans an average of $207 to prepare their taxes, up from $185 three years ago. For more information, see the Miami Herald Article that discusses this issue in detail.
I have mixed feelings about the so-called attempts to simplify the tax code because I'm sure during the simplification process we will lose deductions and credits and ultimately end up paying more in taxes. However, it is just crazy that … (0 comments)
|
|
|
|
|
|
Lisa Lambert, Esq. (1031 Exchange Expert)
Fresno,
CA
More about me…
The Law Offices of Elisabeth A. Lambert
Address: 1222 W. Shaw Avenue, Fresno, CA, 93711
Cell Phone: (559) 433-5399
Email Me
Discussing 1031 Exchange Issues and Related Real Estate Issues in California. Specifically focusing on the Merced, Madera, Fresno, Selma, Reedley, Oakhurst,Visalia, Hanford, Porterville and Bakersfield areas.
 Links
Archives
|
;)
;)
