Grace’s Recent Posts

What Challenges to Personal Financial Planning Does Marriage Present?

What Challenges to Personal Financial Planning Does Marriage Present?

Personal financial planning focuses on steps to establish certain short- and long-term financial goals. Tasks like creating a personal budget, planning for taxes, and setting up investments and accounts can help individuals reach specific objectives, from paying off student loan debt to having enough to live on during retirement. 

Aug 9, 2022

How Does Rental Property Affect Debt to Income Ratio?

How Does Rental Property Affect Debt to Income Ratio?

Debt to income (DTI) ratio is a crucial calculation that compares what you earn to what you owe. Lenders (like banks or mortgage companies) use your debt to income ratio as one factor in deciding whether to grant you credit and how much. Lenders often distinguish between the borrower’s front-end and back-end ratios.

Aug 7, 2022

How Does a 1031 Exchange Work in Conjunction with Depreciation on an Investment Property?

How Does a 1031 Exchange Work in Conjunction with Depreciation on an Investment Property?

Selling an investment property for a gain can result in a large tax bill. Some of that bill may include paying back depreciation. This is called depreciation recapture. The recaptured depreciation is taxed at a different tax rate. Does a 1031 defer depreciation recapture taxes or does depreciation continue as if it is the same property?

Aug 2, 2022

How Might Taxes Have an Impact on Your Financial Plan?

How Might Taxes Have an Impact on Your Financial Plan?

Financial planning is not an exact science. Plans are best when they are flexible and frequently reviewed for needed changes. Sometimes you may need to change in response to external conditions, while at other times, you may want to change your plans because of changes in your circumstances. Either way, continuous review and updating are part of a good planning process.  

Jul 29, 2022

What Is Retirement Income 1099-R?

What Is Retirement Income 1099-R?

The U.S. Internal Revenue Service employs various forms to share information with taxpayers about what it knows concerning their income. One of these “form families” is a series of 1099 forms. For example, the 1099-INT reports interest income you have received, 1099-C is for canceled debts, 1099-H involves Health Coverage Tax Credit Advance Payments, and the 1099-MISC communicates miscellaneous income not classified elsewhere. The 1099-MISC is often used to report money paid to an independent contractor by a company that is not the contractor's employer. The IRS requires most of these forms to be sent by the payer by January 31 of the year after the payment was made.

Jul 24, 2022

Is the 1% Rule of Real Estate Investing Realistic?

Is the 1% Rule of Real Estate Investing Realistic?

The 1% rule is a guideline that real estate investors use to choose viable investment options for their portfolios. Although the rule has helped many investors make wise decisions regarding their investment properties, the current real estate market may make following the 1% rule unrealistic.

Jul 19, 2022

What Are the Major Risks in Real Estate Investing?

What Are the Major Risks in Real Estate Investing?

Every investment has risk. Earning a return above the risk-free rate means taking risk. The analysis of risk is a big topic. But there are some real estate risks that we can identify as being much higher than other risks. This isn’t to play down lesser risks. But at least knowing where major investment risks lie can provide a quick risk mitigation checklist for potential investments. 

Jul 15, 2022

How Can I Join a Real Estate Investment Group (REIG)?

How Can I Join a Real Estate Investment Group (REIG)?

Some real estate investors like to work independently, buying and selling properties with just the capital they have. Others prefer to craft a more in-depth portfolio, perhaps with fractional ownership of assets that they buy through a Delaware Statutory Trust or a REIT. Every investment method has its advantages and potential disadvantages. One less common approach is through a real estate investment group (REIG).

Jul 11, 2022

How Do You Calculate Realized Gains?

How Do You Calculate Realized Gains?

Discussing gains from investments can be confusing. For example, there are short and long term capital gains, deferred gains, and realized versus recognized gains. These distinctions are essential to understand as an investor and taxpayer working to maximize how much you gain and how much of any income you keep.

Jul 7, 2022

What Is the Minimum Investment Needed for a DST?

What Is the Minimum Investment Needed for a DST?

Investors looking to grow their real estate portfolio may consider purchasing ownership in a Delaware Statutory Trust (DST). A DST strives to provide access to high-dollar commercial property for investors with minimal capital.

Jul 1, 2022

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