The Realized Team’s Picks
Can a Distillery Be an Opportunity Zone Business?
Opportunity Zones, commonly referred to as Qualified Opportunity Zones or QOZs, were created by the 2017 Tax Cuts and Jobs Act. Formally known as the Investment in Opportunity Act, the relevant portion of the legislation was included in the TCJA to encourage investment of capital gains into specifically designated, economically challenged areas that could benefit from the infusion of funds. In return for directing their assets into the identified areas, taxpayers could receive tax deferrals and even breaks on their earned gains.
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.
Do REITs Have a Limited Lifespan?
The term REIT (Real Estate Investment Trust) refers in a broad sense to a type of organization that owns or invests in real estate or financial instruments related to real estate. REITs come in several varieties, and the differences can cause some confusion. However, the basic structure and requirements are as follows:
How Much Do 1031 Exchange Companies Cost?
A 1031 exchange refers to Section 1031 of the Internal Revenue Code, which allows taxpayers to defer the recognition of capital gains taxes which would otherwise be due from selling investment property if the investor replaces the sold property with a “like-kind” asset of the same or higher value. At the outset, this exchange was a real-time event (and it was possible to transact using other assets in addition to real estate), but over time it has developed such that most exchanges transpire on a delayed basis. As a result, protocols need to be in place to ensure that the taxpayer doesn't control the proceeds from the sale of the property they are relinquishing during the time before the purchase of the replacement.
Are Charitable Donations Tax Deductible?
The short answer is yes; charitable donations to qualified organizations can be tax deductible. However, there are some stipulations and reporting requirements.
What Is a Residential REIT?
Real estate investors are often looking for ways to further diversify their portfolios. In the same way that investors who focus on publicly traded stocks don’t solely focus on one type of asset class, real estate investors often like to hold investments in varying types of real estate.
What Types of Risk Cannot Be Reduced by Portfolio Diversification?
Portfolio diversification is a basic tenant of any good risk management strategy. However, there are some risks that portfolio diversification can not improve on. It’s important to be aware of the limitations of portfolio diversification and the risks that a portfolio will face no matter how well diversified it is. This article will dig into the types of risk that can’t be reduced by portfolio diversification.
