AMT & Disposition of Business Or Rental Property

In our last article we talked about the alternative minimum tax item, resulting from depreciation of business or rental property. A direct corollary of that issue is the AMT item that results from any subsequent sale or other disposition of such property. Critical to minimizing a taxpayer’s AMT is an understanding of the relationship between these two items.

When property is disposed of, a taxpayer calculates the gain or loss based on the difference between the selling price and his tax basis. For something like a stock or a bond, tax basis is the amount originally paid for the investment – that is all that is needed. This same concept also applies to the sale of business or rental property, but with one important difference – depreciation. In the case of depreciable property, tax basis is the amount originally paid, but then reduced for any depreciation taken.

The tax basis … Read More

AMT & Disposition Of Enterprise Or Rental Property

While you rent a property management company to serve as the liaison between your self and your tenants, you want to ensure you’re getting the best possible property administration services for the money. More than one third of properties are bought to consumers who learnt that the property was on the market through a for sale signal. Add to this the truth that the PSF of the condos are nonetheless significantly larger than for landed and cluster properties, it seems to suggest that the PSF variations will narrow, with important upside for landed and cluster houses.

With 1000’s of abroad properties on the market from throughout the globe, we will ensure your dream becomes a actuality. In most places, the homeowners of those properties are given a grace interval – normally a year – after the tax auctions to try to provide you with the cash to pay off their … Read More