Rebalancing, Explained: How Calendar Schedules and Tolerance Bands Keep Your Portfolio on Target
Rebalancing restores your target allocation — check annually, trade only past a 5-point band, and steer new cash first to avoid taxes.
#capital-gains
Capital Gains
Track and report capital gains from investments
Fiduciary Accounting Income, Explained: How Trustees Split Principal From Income
Fiduciary accounting income, not taxable income, sets trust distributions — dividends and rent to the income beneficiary, capital gains to principal.
Recourse vs. Nonrecourse Debt: When a Default Stops at the Collateral — and When It Follows You Home
Nonrecourse foreclosure is taxed on the full balance; a recourse shortfall becomes ordinary IRS cancellation-of-debt income — same default, different bill.
Short-Term vs. Long-Term Capital Gains: The IRS One-Year Holding Rule, the Rate Gap, and the Anniversary-Day Trap
The IRS counts your holding period from the day after you buy, so an anniversary-date sale is short-term — taxed up to 37% instead of 0–20%.
Fractional 1031 Exchanges Through a Statutory Trust, Explained: How Rev. Rul. 2004-86 Lets Landlords Swap Active Management for Passive Ownership
Under IRS Rev. Rul. 2004-86, a DST interest counts as like-kind real estate — roll sale proceeds into passive property and defer gain under Section 1031.
Reverse 1031 Exchanges, Explained: How Buying the Replacement Property First Still Defers Your Tax
A reverse 1031 exchange lets you buy the replacement property first under the IRS safe harbor — then sell the old one within 180 days.
Tax Lien and Tax Deed Investing, Explained: Interest Rates, Redemption Periods, and the Taxes on Your Returns
Tax lien certificates pay state-set rates up to 24%, but auctions bid most winners to single digits — and the IRS taxes the interest as ordinary income.
Tax Straddles, Explained: Why Section 1092 Defers Your Options Loss When the Offsetting Leg Still Shows an Unrealized Gain
Section 1092 defers a straddle loss up to the unrealized gain on the offsetting leg — close the loser alone and the deduction waits.
DRIPs, Explained: How Dividend Reinvestment Plans Compound With Fractional Shares and Discounts
A DRIP reinvests your dividends into more shares automatically — but the IRS still taxes every dollar. How compounding, discounts, and cost basis work.
General vs. Limited Powers of Appointment: Why One Pulls Trust Property Into Your Taxable Estate
A general power of appointment under Section 2041 pulls trust property into your taxable estate; a limited power or HEMS wording keeps it out.
Selling Your Song Catalog vs. Keeping the Royalties: The Tax Math, the Sync Premium, and the Unclaimed Money to Find First
Under Section 1221(b)(3), songwriters pay 20% capital gains on a catalog sale instead of 37% ordinary rates on royalties, elected per song.
Tenancy in Common: How to Co-Own Exchange Property Without Accidentally Creating a Partnership
TIC interests are deeded real estate, not partnership shares — so they can qualify for Section 1031 deferral if the co-ownership meets IRS ruling conditions.