Obama’s 2015 budget proposes a $1M cap on section 1031 like-kind exchanges of real estate. Currently, when a capital asset is sold or exchanged, a capital gain or loss is generally recognized. Internal Revenue Code Section 1031 provides an exception to defer recognition of capital gains when business or investment… [Read more]

Information the real estate investor should know before filing a 2013 income tax return. Owning investment property can provide many benefits and tax incentives. However, several pitfalls exist for the unwary real estate investor expecting to take losses from real estate investments and offset ordinary income from their full time… [Read more]

The answer will vary depending on the facts specific to the individual, loans, and real property, but in generally, a discharge of debt from a foreclosure is excluded from taxation under Internal Revenue Code §108(a)(1)(E), if the real estate is a residential property that was occupied by the homeowner(s) as… [Read more]