If you are starting to be successful in property investment, you will know the rush of being able to buy and sell property for a profit. However, one major hurdle for property developers is capital gains tax. This tax can severely impact the amount of profit you can make by flipping properties; therefore, it can disincentivize investors.
There was some concern about what would happen to Florida's luxury real estate market once the United States Treasury's Financial Crimes Enforcement Network (FCEN) took aim at foreign buyers using shell companies to buy properties.
Owning rental properties is often a great way to gain passive income for retirement or some extra income on the side. You have likely weighed the pros and cons of purchasing a rental property and are confident in your ability to both effectively manage and profit from it.
Creating limited liability companies (LLCs) for real estate purposes is a popular choice for many investors. There are obvious advantages to LLCs, but one of the main reasons why investors choose to create an LLC for a real estate investment is because it protects them personally from the risk of loss.
If you're relatively new to the world of business and commercial leases, one of the first things you need to learn -- whether you're the landlord or the renter -- is the meaning and importance of "exclusive use clauses" in your leases. Not knowing how use clauses work is a common -- and potentially costly -- mistake.
Buying and selling properties can mean that homeowners become subject to significant capital gains taxes. These taxes can be so high that they can often deter property investors from engaging fully in the market. This is why it has been made possible for property investors to avoid capital gains taxes in certain situations.