The Realized Team’s Picks
Closed-End Real Estate Funds: What You Need to Know
Investors have numerous options for owning real estate. Direct investment is one, and various forms of shared ownership offer others. In addition, real estate funds may be public or private and can be formed as corporate entities or investment trusts. In either example, the fund is often created for an indeterminate period but may have a specific lifespan in some cases.
How to Calculate Capital Appreciation in Real Estate
If you buy, hold, and sell real estate for trade or investment, you already know that returns are an important factor in determining an effective investment strategy. Also important? Knowing your asset’s capital appreciation and how to calculate it. Fortunately, you don’t need to be a math whiz to determine the numbers. You only need to know the basic formulas.
Is it Possible to Decrease Tax Liability After Several 1031 Exchanges?
According to Benjamin Franklin, the only thing certain is death and taxes. And, when it comes to owning real estate as an investment, taxes are definitely certain. In addition to property taxes and taxes on earned income, capital gains taxes must be paid when the asset is sold (assuming, of course, that it is sold at a profit).
How do Delaware Statutory Trust Sponsors Make Money?
A Delaware Statutory Trust, or DST, is an investment option that allows investors to purchase fractional interests in a commercial property portfolio and seek to manage tax liability. Although none of the investors or the property needs to be in Delaware, a DST needs to have a Delaware resident as one of the trustees; however, the designated Delaware resident does not need to be an active decision-maker.
Are REITs Considered Alternative Investments?
Investing can be a way to earn extra income and plan for your future. One type of asset to consider investing in is real estate, in the form of REITs.
How Does Depreciation Affect Tax Shields?
Tax shields are named so because they help to shield income from taxes. By taking various forms of tax deductions, income can be offset (i.e., reduced), resulting in a lower tax bill. The type of tax shield depends on the individual, business, and country they are living in.
What is a Delaware Grantor Trust?
The state of Delaware offers potential income tax advantages and has trust-friendly laws for individuals. These benefits aren’t limited to the residents of the state. Non-residents can use the state’s laws to their advantage by creating a trust fund in Delaware. One type of trust to consider opening is a Delaware grantor trust.
How Are REIT ETFs Taxed?
Real estate provides an investment opportunity that can further diversify your investment portfolio. If you’re planning on investing in real estate, you may be interested in REITs or REIT ETFs. A real estate investment trust (REIT) is a company that seeks to invest in or finance income-producing real estate across a range of property sectors.
How Long Can a Charitable Remainder Trust Last?
A Charitable Remainder Trust (CRT) is a trust set up by an individual. Typically, the intention behind the trust is to reduce the grantor’s taxable income by making payments to the beneficiaries while the trust is extant. Then the grantor gifts the remainder of the assets to a designated charity when the trust ends.
How Does Section 1411 Define An Active Partnership Interest?
Internal Revenue Code Section 1411, which became effective for tax years beginning January 1, 2013, was added to tax law as part of the Health Care and Education Reconciliation Act of 2010, to increase revenue. Called the Net Investment Income Tax, it is imposed on individuals, trusts, and estates, levying a tax at the rate of 3.8 percent on investment income above specific threshold amounts.
