A Non-Traded Real Estate Investment Trust (REIT) is an investment vehicle that offers the tax benefits of a REIT while maintaining privately-held features similar to a limited partnership.
An ordinary loss is a loss that is deductible against ordinary income for income tax purposes and is generally more beneficial to a taxpayer than a capital loss, which has limitations on deductibility.
In real estate, a principal residence is the main home where a person lives most of the time. Principal residences qualify for specific tax benefits, such as rollover tax treatments.
A real estate property tax deduction allows homeowners to reduce their taxable income by the amount they pay in property taxes. This deduction can be claimed on an individual's federal income tax return under itemized deductions.
A second home is a residence that serves as a non-primary residence for a taxpayer, often used for leisure or vacation purposes. Tax laws allow interest deductions for up to two personal residences, including second homes.
A tax-deductible expense is a type of expenditure that can be subtracted from taxable income, thus reducing the amount of income that is taxed. This helps in lowering the overall tax liability for individuals and businesses.
