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Justin Ross

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Is Real Estate Tax the Same as Property Tax?

While real estate tax and property tax may sound like the same things, there are some distinctions. At a high level, real estate taxes are a group of various types of taxes imposed on real estate. Property tax happens to be one of those types. Let’s look at the various taxes that compose real estate taxes.

Posted by Justin Ross on Dec 2, 2021

Topic: Tax


How Do I Know If I Have Tax Liabilities?

One aspect of being an investor is operating within the framework of the law. Obviously, you want to make investments that provide a positive return on your initial investment, but how you manage those returns may be even more important. The Federal Tax Code, while it does provide some tax breaks and deferral options, is clear about one thing: when you owe the federal government taxes, they want their money. Understanding how to determine when and if you owe taxes and the consequences of not doing so is one aspect of becoming an informed investor in any industry.

Posted by Justin Ross on Nov 28, 2021

Topic: Tax


What Is a Charitable Remainder Trust and How Does it Work?

Trusts are often complex, and there are many types. Therefore, it's always a good idea to have expert assistance when establishing one, especially if the trust is irrevocable. According to the Business Dictionary, the definition of a trust is "a legal entity created by the trustor through which the trustee holds the right to manage the trustor's assets or property for the benefit of the beneficiary." The  main types of trusts are living, testamentary, revocable, irrevocable, funded, and unfunded. Within each of those, there are further variations.

Posted by Justin Ross on Nov 24, 2021

Can You Combine Opportunity Zones and New Market Tax Credits?

Opportunity Zones and New Market Tax Credits both provide tax benefits to taxpayers who invest directly into low-income neighborhoods that historically have been overlooked when it comes to new investment capital.

Posted by Justin Ross on Nov 19, 2021

Can You Sell a Delaware Statutory Trust?

A Delaware Statutory Trust, or DST, is a legal entity created using Delaware state laws to establish a trust. Each individual investor owns a beneficial interest in the trust, which then holds the properties the trust buys. Since the IRS considers that investors (referred to as beneficiaries of the trust) have direct property ownership of the trust's assets, they are entitled to the tax benefits of real estate, including the ability to enter and exit the DST through the use of a 1031 exchange .

Posted by Justin Ross on Nov 15, 2021

Are Refinancing Closing Costs Tax Deductible on Rental Property?

Rental property investors may wonder if the closing costs associated with refinancing their rental properties are tax deductible. While it may seem like a simple question, certain closing costs must be disclosed on your tax return. There are some factors that determine whether the closing costs on your refinanced mortgage are tax deductible.

Posted by Justin Ross on Nov 11, 2021

How To Determine Land Value in Commercial Real Estate

Various factors determine the value of a commercial property, and it's difficult to pinpoint which has the most significant influence. Many people who invest in commercial real estate may not fully understand how to evaluate their potential investments or what factors to consider when doing so.

Posted by Justin Ross on Nov 6, 2021

Can I Invest Directly Into a Qualified Opportunity Zone Business?

Mentioning the term “Opportunity Zone Program” could bring up thoughts about ground-up real estate construction or building renovations in or near lower-income areas. And, as we’ve written about in the past, if you’re interested in investing in one of those properties or projects, you need to put your capital gains into a Qualified Opportunity Fund (QOF). That fund collects capital gains from multiple investors, and then puts money into specific Qualified Opportunity Zone (QOZ) projects. 

Posted by Justin Ross on Nov 2, 2021

Can a Trust Deduct Property Taxes?

For some, trusts seem to take on a powerful aura. They believe that by setting up a trust, they'll avoid probate, protect their assets, and save on taxes. You might be disappointed to know that it doesn't quite work like that.

Posted by Justin Ross on Oct 28, 2021

Topic: Tax


Can an Opportunity Zone Flip Houses?

The Tax Cuts and Jobs Act created Qualified Opportunity Zones in 2017. The goal of this legislation was and is to encourage investment in economically distressed areas. It does this by incentivizing taxpayers to direct their capital gains (profits from the sale of qualified assets) into new investments in specific areas. The zones are designated census tracts identified as low-income and in need of more significant economic investments. The Treasury Department has recognized over 9,000 census tracts among those nominated by each state and most U.S. territories.

Posted by Justin Ross on Oct 23, 2021

Another Way To Own Investment Properties

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