The Realized Team’s Picks
What is the Most Conservative Asset Class?
Conservative investments can be an important aspect of a well-diversified portfolio, especially as you near or enter retirement.
What Is A DST, And How Are They Used For 1031 Exchanges?
DST is an abbreviation for Delaware Statutory Trust, a legal entity constructed under Delaware law. Despite the name, neither the property nor the investors need to be located in Delaware. In a DST, each investor has an ownership interest in the Trust, which in turn owns the property. Investors are known as “beneficiaries” of the Trust. For these reasons, the security that an investor in a DST owns are called “beneficiary interests.” The IRS treats DST beneficiary interests as direct property ownership, thus qualifying for a 1031 exchange.
Who Pays Capital Gains Tax?
Capital gains fall into a category of income called unearned income. This separates them from income that people earn at their job (i.e., wages). Because of this difference, capital gains may be taxed differently from earned income. In this article, we’ll look at how capital gains are taxed and who has to pay them.
What Is a 70/30 Asset Allocation?
Asset allocation is an important aspect of portfolio diversification, as well as a means to help investors manage their exposure to risk.
How Do 1031 Exchanges Work?
In the simplest terms, a 1031 Exchange allows a taxpayer to defer the recognition of capital gains tax due from the sale of investment property by replacing the sold property with a "like-kind" property of the same or greater value. Section 1031 of the Internal Revenue Code originally applied to personal property as well as real estate, but was amended by the Tax Cuts and Jobs Act to remove exchanges of intangible and personal property. To successfully defer the capital gain, the taxpayer must use the profit from the sale to purchase a like-kind property within 180 days.
[Webinar Recap] Unique Considerations When Evaluating DST Structural Risk
If you’re considering investing in a Delaware Statutory Trust (DST), there are some things you need to consider before making the leap. Evaluation of a DST is a unique process because of the DST’s legal and financial structure as a pre-packaged investment. The Sponsor defines the terms of a DST in a Private Placement Memorandum (PPM), which outlines the rights of the involved parties, including the investors, Sponsor, and lender. The PPM also designates each party’s compensation.
What Is the Difference between a Primary and Contingent Beneficiary?
If you’ve had a chance to read our previous blogs on the topic, you already know about beneficiaries. A beneficiary is an individual or an entity eligible to receive distributions from a trust, will, or life insurance policy. We’ve discussed the importance of naming beneficiaries to ensure that your wealth and/or assets go to the designated people or organizations you choose.
What Expenses Are Higher during Retirement?
Retirement generally means stepping away from a day-to-day job you might have had for years, or even decades. It also means stepping away from a steady wage and/or salary.
What Is A Modified Gross Lease?
A modified gross lease is a variety of commercial real estate lease. In this structure, the tenant pays base rent and a proportional share of some other property costs, including taxes, utilities, insurance, and maintenance. A modified gross lease sits between a gross lease, where the landlord pays for all operating expenses, and a net lease, which passes on property expenses to the tenant.
What Is Required Minimum Distribution (RMD) And How Do You Calculate It?
If you’re like many in the workforce (as either an employee or a business owner), the chances are pretty good you’ve set up some kind of defined contribution plan for your retirement years. During each pay period, you’ve contributed a certain amount from your earnings to that plan, and maybe you’re taking comfort in seeing that balance grow.
