Colton’s Recent Posts

An Overview of REITs

REITs allow investors to get involved with real estate investing passively. There’s no property management as is often required with real property. An investor’s equity in a REIT turns into fractional ownership of real estate. There are many types of REITs to choose from. In this article, we’ll give an overview of several different types of REITs.

Mar 28, 2023

What Happens to Depreciation Recapture in an Opportunity Zone?

There’s been a great deal of discussion about the Opportunity Zone Program since its introduction as part of the Tax Cuts and Jobs Act of 2017. The program’s focus is on investors with capital gains resulting from the sale of capital assets. Specifically, investors funnel those gains into Qualified Opportunity Funds. The QOFs, in turn, use that money to benefit federally designated, generally low-income Qualified Opportunity Zones.

Mar 23, 2023

How to Report a Section 121 Exclusion

Section 121 of the Internal Revenue Code allows taxpayers to exclude from income some of the gains they have enjoyed due to the increase in value of a primary residence. The IRS rules are meant to support the exclusion by homeowners while denying it in the case of an investment property. To that end, taxpayers claiming the exclusion must satisfy both an ownership and use test.

Mar 20, 2023

What Does it Mean When a Property Is Under Contract?

When a property is listed for sale, potential buyers make an offer with their best price and any contingencies. If the seller accepts the offer, the property is considered “under contract.” The buyer and seller are now in a legally binding agreement.

Mar 18, 2023

Are IRA Withdrawals and Distributions Taxed as Ordinary Income?

Unexpected financial events and major expenses are commonplace, but they can have a big impact on your retirement funds, especially if you withdraw money from a retirement account to pay for them. 

Mar 14, 2023

Does an Estate Pay Taxes on the Sale of a Home?

Inheriting a home after someone close to you dies can bring significant financial benefits, but it also may come with tax liabilities if you sell the home after receiving it as part of the decedent’s estate.

Mar 9, 2023

What is Pari-Passu?

Pari passu is a term used in some industries that means that the parties or assets in a financial transaction are treated equally. It stems from the Latin meaning of pari passu, “with equal steps,” or “on equal footing.” The parties might include creditors, business partners, securities, or investors. 

Feb 25, 2023

Direct Or Fractional Real Estate Investments: Which Offers Greater Potential Profits?

Real estate is historically a robust long-term investment. In the US, homeownership is an elevated goal for many people. For some, extending that pursuit to add additional property becomes the foundation of their wealth accumulation strategy. And it's no wonder since buying and holding real estate can be a path to success.

Feb 17, 2023

Does a Delaware Statutory Trust File a Tax Return?

Investors who 1031 exchange into Delaware Statutory Trusts (DSTs) may wonder how to address their annual tax reporting requirements from this type of investment vehicle. 

Feb 13, 2023

Are Trust Funds Taxed?

A trust fund is set up like a traditional trust, but how it operates can be a little different. However, some trust funds look and operate like a living trust (or irrevocable trust). What does that mean when it comes to trust funds and taxes? Are they taxed like a living trust or an irrevocable trust?

Feb 9, 2023

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