The Realized Team’s Picks
How To Avoid Kiddie Tax
For investment property owners, planning for your children’s financial future can be a lucrative endeavor, but there are tax implications to consider, such as the kiddie tax. The kiddie tax laws aim to prevent parents from shifting income to their children to take advantage of lower tax brackets. Understanding and strategically managing this tax can help savvy investors preserve more of their wealth.
What Is the Tax on Investment Income?
Investing in rental properties and other assets can be a rewarding endeavor not just for the potential passive income, but also for the capital appreciation over time. However, with the benefits come certain tax obligations that investors must navigate. One such tax is the Net Investment Income Tax (NIIT), which is particularly relevant for high-income earners with significant investment income.
How Am I Taxed When I Sell My Business?
Selling a business can be a pivotal moment for any business owner, offering an opportunity to reap the rewards of years of hard work. However, it's also a moment that comes laden with complex tax implications, which need careful consideration to ensure the financial benefits are maximized. Here's what you need to know about the taxation process when you sell your business.
How To Calculate Capital Gains Tax On Property
For investment property owners, understanding how to calculate capital gains tax is crucial for maximizing profits when selling real estate. Capital gains tax is levied on the profit derived from the sale of property or an investment. Often, this concept is discussed in hushed tones resembling a complex Wall Street strategy, but it doesn’t need to be overly complicated.
What Are The Tax Consequences Of Selling A Second Home?
Selling a second home can be a rewarding venture, providing the potential to benefit from an appreciated real estate market. However, it also comes with specific tax consequences that savvy investors should understand. Whether you're considering selling a vacation home or a rental property, it's crucial to grasp the implications to manage your financial strategy effectively.
How Much Tax Do I Pay If I Sell Land?
For investment property owners, selling land is often a significant financial decision that involves critical tax implications. Here's a comprehensive look at what you need to know about taxes when selling land.
Delaware Statutory Trusts vs. Non-Traded REITs: Structural Differences Explained
Many passive real estate investment options exist nowadays, providing investors with a wide range of choices based on their needs and investment goals. Two popular avenues are Delaware Statutory Trusts (DSTs) and non-traded real estate investment trusts (REITs). Both offer benefits like passive income and enhanced diversification, but they have fundamental structural differences that affect 1031 Exchange eligibility, liquidity, cash flow, and lots of other critical considerations.
How DSTs Fit Into a Broader Passive Real Estate Portfolio
For many investors, building a passive real estate portfolio is an end goal. It’s how you keep earning income after retirement while also securing your wealth for future generations. There are many types of real estate assets that can help you create a passive portfolio, and Delaware Statutory Trusts (DSTs) are one of the most strategic additions.
How Inflation Affects Delaware Statutory Trust Returns
Delaware Statutory Trusts (DSTs) carry a lot of promise, especially for investors looking for passive income, enhanced diversification, and tax-deferral benefits. However, like any other real estate investment, DSTs can still feel the effects of economic realities like inflation. Whether you are already invested in a DST or considering one to end a 1031 exchange, understanding how rising prices influence both income and long-term appreciation is critical. This knowledge helps you prepare for these scenarios and weather them with confidence.
DST Cash Flow Stability: How Lease Terms and Tenant Types Matter
Many modern investors have recognized the appeal of Delaware Statutory Trusts (DSTs), with promises of enhanced diversification, tax-deferral benefits, and passive and predictable income. The latter is affected by two major factors: lease terms and the type of tenant occupying the property. These two variables are often overlooked when evaluating offering memorandums, but tenant type and lease terms can fundamentally affect the cash flow and risk profile of the DST.
