Being a real estate professional in the eyes of the IRS offers several benefits, particularly in terms of tax advantages. One of the primary benefits is the ability to deduct losses from real estate activities against other types of income, such as W-2 income or 1099 non-employee compensation. This…
How are sales of real estate such as land and buildings reported on your tax return? Is the net income (or loss) taxed as ordinary income or capital gain? The answer is that it “depends.” The determination is based on the facts and circumstances of the situation and the intention of the…
The sale of a principal residence is generally not a taxable event, unless the taxpayer: Has a gain and does not qualify to exclude it all Has a gain and elects not to exclude it Received a Form 1099-S for the sale Typically, a single taxpayer can exclude from their…
Opportunity Zones are a new tax incentive coming from the Tax Cuts and Jobs Act (TCJA). These zones were created with the intent to connect private investment capital to economically distressed communities. Designated opportunity zones have been assigned in South Dakota, with an opportunity zone residing right in downtown…
