There is a number of ways to hold title to real property. Perhaps the most common way is to hold full title – or “fee” simple title – as an individual or married couple. Title to real property can also be held jointly by multiple corporate or individual persons. One increasingly common means to
Combining Sections 121 & 1031 for Optimal Tax Treatment
As we’ve noted before on HTW, Section 1031 of the IRC applies specifically and exclusively to real property used for business or investment purposes. Section 121, on the other hand, applies to primary residences, and can be utilized to eliminate substantial capital gain upon the sale of one’s
Bitcoin, Taxes & Statehood
In our earlier post about the taxation of bitcoin, we pointed out the fact that bitcoin taxation brings up a number of potentially problematic, complicating issues. For one, we mentioned that there could be issues with bitcoin’s basic classification as “investment property” given that it is a
A Basic Introduction to Reverse Section 1031 Tax Deferred Exchanges
Here on HTW, we’ve spent considerable time and effort exploring the complexities of Section 1031 tax deferred exchanges. And this is for good reason: if performed correctly, a 1031 like-kind exchange can be an extremely useful wealth maximization tool. Like-kind exchanges not only allow taxpayers to
The Debate to Preserve or Eliminate Section 1031
As lawmakers of the federal government struggle to deal with our ever-increasing national debt, Section 1031 of the Internal Revenue Code has come under scrutiny and may face extinction. Now that Republicans control both sides of the Congress (and the White House), Section 1031 could be seriously
The (Relatively) Uncharted Territory of Bitcoin Taxation
Though still largely unfamiliar to the general public, the cryptocurrency known as “bitcoin” has received more and more attention in the last several years. This is due in part to its impressive rise in market value -- as of today, bitcoin’s market value fluctuates in the low $4,300 range, but only
Cuts to Benefit Programs Indispensable to Trump’s New Budget Plan
As we discussed in our feature article on Trump’s tax reform proposal, President Trump’s plan is to consolidate the existing tax bracket structure by reducing the number of brackets from seven down to three. This consolidation will positively impact very high earning Americans and negatively impact
A Few Thoughts on Seattle’s New Tax on the Wealthy
On Monday, July 10, the Seattle City Council unanimously approved a new city income tax targeted toward Seattle’s highest-earning residents. The new tax will collect 2.25 percent on incomes above $250,000 for individuals and $500,000 for married couples filing jointly. Expectedly, the measure has