The Realized Team’s Picks
Who Can Deduct Property Taxes?
Local governments typically levy property taxes, which serve as the primary funding source for those regional entities. Proceeds from property taxes pay for police and fire services, education, maintenance and construction of buildings, and local services. In most areas, property taxes are imposed on land and buildings--both residential and commercial. For example, in most states, property taxes on residential units are calculated according to the fair market value of the housing. Still, there may also be limitations or exemptions for certain citizen groups, like veterans, the disabled, and the elderly.
What Is an Office REIT?
Real estate investment trusts, also referred to as REITs, provide an opportunity for real estate investors to diversify their portfolio while pursuing truly passive income. Within the world of REITs, there are several subcategories, which allows investors to further diversify their portfolios while investing in some real estate types that they may not otherwise have access to. As an investor, understanding all of the options available to you is important.
Do I Have to Itemize to Deduct Property Taxes?
As a real estate investor, you may be looking to maximize income and minimize taxes. Those are desirable goals, and there are strategies you can use to help work toward them. Having expert professional financial and tax advice is a good way to ensure that you are taking advantage of all the potential opportunities available to you. One possible benefit of investing in real estate is that the deduction can sometimes lower other income in addition to the revenue from the real estate investment.
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.
Is REIT Income Taxable?
In order to qualify as a real estate investment trust, the trust has to return a minimum of 90 percent of taxable income gained from income-producing properties, asset divestiture, and other means back to shareholders in the form of annual dividends.
How Is Portfolio Risk Measured?
If there is one takeaway from our blogs, it’s that there is no such thing as risk-free investments. You measure your risk tolerance by understanding your financial goals and what type of return you are seeking. The general rule of thumb here is that the higher the risk, the higher the potential rate of return.
What Is Deferred Tax Liability?
One of the most important aspects of investing or business ownership is found in understanding the Federal Tax Code. Failure to understand that federal law could put you in a position to face hefty fines and potentially serve federal prison time. While the federal government always expects you to pay your taxes, it’s also important that you understand the legal delays that are provided within the Federal Tax Code. One such example is found in deferred tax liabilities. These legal delays provide investors and business owners with a temporary reprieve on paying federal income taxes on certain earnings.
Do REITs Pay Dividends?
The majority of real estate investment trusts (REITs) trade on exchanges just like stocks, commodities, and other common financial instruments.
Can a 1031 Exchange Be Used for Residential Property?
A 1031 exchange is a tool that investors can use to defer the recognition of capital gains when they want to sell one piece of investment property and purchase another. The reference is to the relevant section of the Internal Revenue Code, specifically Title 26, Section 1031. Originally the intention was to allow farmers to exchange parcels of land, but the allowable uses have changed since the exchanges were first permitted in 1921.
How Is a Private REIT Started?
Real estate investment trusts (REITs) have grown in popularity as business entities in part because they are exempt from taxation at the corporate level when they meet certain distribution requirements, which also makes them exempt from double taxation paid by C-corporations.
