What Are Section 199A Dividends? Section 199A dividends are REIT dividends that are listed in Box 5 of Form 1099-DIV. They should be included on a taxpayer’s federal tax return. Generally, REIT dividends create a taxpayer-favorable federal income tax deduction. Dividends paid out by real estate investment trusts (REITs) or […]
Real Estate
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Pool Taxes – Does an Inground Pool Increase Property Taxes? While there are no direct pool taxes, an inground pool increases a property’s value In turn, this indirectly raises property taxes and insurance rates. In-ground pools tend to enhance property values, which in turn raises property taxes. The type of […]
What Is an Unrecaptured Section 1250 Gain? An unrecaptured Section 1250 gain occurs when selling real estate for financial gain after claiming depreciation tax breaks in previous years. Section 1250 is part of the Internal Revenue Service (IRS) tax code. It allows previously recognized depreciation to be reclaimed as income. […]
What Is a Purchase Money Mortgage? A purchase money mortgage is seller or owner financing granted by the seller of a home to the borrower as part of the purchase transaction. This type of financing is typically used when a buyer cannot qualify for a mortgage through standard banking methods. […]
What Is the Income Approach for Real Estate Valuation? The income approach is a real estate valuation method where investors estimate the worth of a property based on the revenue it generates. This method is also known as the income capitalization technique. It is a real estate valuation process that […]
Tax Credit Apartments – What Is a Tax Credit Property? Tax credit apartments are housing projects or apartment complexes that let landlords or owners claim tax credits in exchange for offering units to low-income tenants with restricted rents. In general, tax credit apartments are complexes owned by a developer or […]