The Realized Team’s Picks
Can You Get Tax Breaks for Opportunity Zone Employees?
Between October 2018 and December 2019, the Internal Revenue Service and the U.S. Department of the Treasury released three guidance reports on the Opportunity Zone program. The guidance focused on clarifying the parameters of this economic revitalization/tax deferral program, outlining everything from the 90% asset test to gains that qualify for Qualified Opportunity Zone (QOZ) investments.
Can a Single-Family Home Be Purchased Under a 1031 Exchange if a Multi-family Home Is Sold?
The 1031 exchange is a tool that investors seek to use to help manage capital gains tax liability by reinvesting the proceeds from the sale of investment property into like-kind assets. The name "1031 exchange" comes from the relevant section of the Internal Revenue Code. Originally it referred to an exchange of actual farmland, but today it applies to taxpayers who hold real property for investment.
Can Qualified Dividends Be Used for Opportunity Zones?
Ever since the Opportunity Zone program came into being, questions have been asked about timelines, approved investment types, and where the federally designated Qualified Opportunity Zones (QOZs) are located.
What Are the Advantages and Disadvantages of a Tax Haven?
While a tax haven may sound like a secret tax scheme available only to the wealthy, it’s actually a method for saving on taxes that’s available to nearly everyone. There are a lot of misconceptions about tax havens. Some think it’s an elaborate scheme designed for the rich to hide their income from the government. Others believe it’s an efficient way to avoid taxes completely. Both are untrue.
What Is the Down Payment for a Rental Property?
Investment property is treated differently from a typical owner-occupied unit. There are various financing options available with owner-occupied units with flexible down payment amounts and a full spectrum of terms. The number of options available will depend on your credit score.
Can a Qualified Opportunity Fund Be Self-Certified?
The Opportunity Zone Program came into existence during 2017, backed by the idea that there are trillions of dollars in capital gains looking for an investment. By placing those capital gains into Qualified Opportunity Funds (QOFs), the monies support Qualified Opportunity Zone Property (QOZP) in more than 8,000 federally designated low-income areas across the United States. In return, investors receive tax deferral benefits.
Can You Do a 1031 Exchange with Stocks?
Regardless of the type of investments that you’re making, it’s beneficial that you understand how to legally apply tax breaks to keep more money in your pocket. If you’ve been investing for a while, you may already know about the options available to you, but if you’re a new investor, it’s a good idea to educate yourself on what tax breaks you can apply to different investments.
What Is a Direct Property Investment?
Direct property investing refers to purchasing, owning, renting, managing, and selling property for profit and returns. Direct property investment is any real estate investment held either directly through direct ownership on the title or indirectly through collective ownership vehicles like managed property investments. Direct property investments may be residential, commercial, industrial, retail, or any other property asset.
What Is the Penalty for Filing Taxes Late?
When you’re late filing taxes without filing for an extension, you could end up paying penalties or interest to the IRS. Penalties for filing taxes late can add up quickly, so it’s in your best interest to file on time, file as soon as possible, or file for an extension before the deadline.
How Can Liquidity Risk And Credit Risk Cause Insolvency?
Above-average returns always come with above-average risks. A thorough analysis can reveal the different types of risk that an investment may hold. Knowing the risks within an investment can help investors to manage those risks better.
