Realized Blog

Robert Cobean

Recent Posts

What Is Excluded from Net Income Investment Tax (NIIT)?

What Is the NIIT?

The Net Income Investment Tax was imposed beginning in 2013 to help fund the Affordable Care Act. The NIIT is contained in Section 1411 of the Internal Revenue Code and applies a tax rate of 3.8 percent to the net investment income of individuals, estates, and trusts that have income above specific thresholds. It applies to income from these sources:

Posted by Robert Cobean on Oct 21, 2021

Topic: Tax

Can a Partner of an LLC Defer Capital Gains Taxes on QOZs?

Much of what is written about the Opportunity Zone program involves investors with capital gains from the sale of capital assets. Those gains can be invested in Qualified Opportunity Funds (QOFs) which, in turn, place those resources into one of 8,000 Qualified Opportunity Zones (QOZs). The investors can then benefit from deferred taxes on those capital gains. 

Posted by Robert Cobean on Oct 15, 2021

What Is a REIT?

To some investors, one of the most appealing aspects of investing in real estate is the opportunity to earn truly passive income. While some people want to be actively engaged in their investment properties, others covet the potential to have their properties generate a passive form of income. However, it’s important to note that there are multiple types of passive real estate investments. Understanding what those options are and which one is right for you can help ensure that you’re making the appropriate choice with your money. One such example of a passive real estate investment tool is a REIT.

Posted by Robert Cobean on Oct 11, 2021

What Is the Down Payment for a Rental Property?

Investment property is treated differently from a typical owner-occupied unit. There are various financing options available with owner-occupied units with flexible down payment amounts and a full spectrum of terms. The number of options available will depend on your credit score.

Posted by Robert Cobean on Oct 5, 2021

How Can Liquidity Risk And Credit Risk Cause Insolvency?

Above-average returns always come with above-average risks. A thorough analysis can reveal the different types of risk that an investment may hold. Knowing the risks within an investment can help investors to manage those risks better. 

Posted by Robert Cobean on Sep 29, 2021

Topic: Risk

Can Banks Create Their Own Opportunity Funds?

Opportunity zones and opportunity funds were created by former President Donald Trump under the Tax Cuts and Job Act of 2017. President Trump created these investment opportunities in an attempt to turn around the economies in distressed, low-income, and underfunded areas. In order for a community to be recognized as an opportunity zone, it must receive that designation from the state and then be certified as such by the U.S. Treasury through the IRS.

Posted by Robert Cobean on Sep 22, 2021

Can Opportunity Zones Be Used for Equipment?

The Tax Cuts and Jobs Act of 2017 brought about many different kinds of tax reform, particularly for corporations and private investors.

Posted by Robert Cobean on Sep 16, 2021

How Do I File a 1033 Election?

Each year we bear witness to yet another out-of-control wildfire that devastates an entire California community, or another destructive hurricane wracking the Eastern Seaboard or the Gulf of Mexico.

Posted by Robert Cobean on Sep 11, 2021

Topic: 1031 Exchange

Do Opportunity Zones Offer Annual Returns?

There are more than 8,760 Opportunity Zones located in all 50 States, the District of Columbia, and five United States territories, many of which have experienced a lack of investment for decades. Qualified Opportunity Zones (QOZ) can provide investors with attractive tax advantages and there’s an ability for OZs to offer annual returns; however, there is no assurance of investment returns, profits, or property appreciation in an Opportunity Zone investment. 

Posted by Robert Cobean on Sep 6, 2021

Can You Transfer Your Opportunity Zone Into a Trust?

What is an Opportunity Zone Investment?

Qualified Opportunity Zone investments and Qualified Opportunity Funds were created by the Tax Cuts and Jobs act in 2017. The legislation created an incentive for investors to reinvest capital gains into designated areas known as Qualified Opportunity Zones (QOZs). By supporting these economically disadvantaged localities, the investors benefit from the chance to defer and reduce the obligation to pay taxes on the capital gain.

Posted by Robert Cobean on Aug 31, 2021

Another Way To Own Investment Properties

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