The Realized Team’s Picks
What Is a Good FFO for a REIT?
One common metric used to measure a stock's financial performance is EPS, or earnings per share. This metric divides a company's net income by the number of outstanding shares. Basically, it lets investors know the value of each share. Investors can determine the company's growth rate by looking at EPS over time.
How Banks Manage Liquidity Risk
Banks, like businesses and individual investors, face the challenge of liquidity risk. The principle of managing liquidity risk for banks involves ensuring that cash inflow, or income, is timed appropriately to meet upcoming financial obligations. Banks employ a range of strategies to ensure adequate liquidity, including maintaining reserves with the central bank, borrowing on the interbank market, leveraging intra-group borrowing, or investing in readily marketable assets like government bonds.
Deferred Sales Trust: What It Is and How It Works
In our published articles, we talk extensively about Delaware Statutory Trusts. However, there is another “DST” that investors can leverage in case they do not qualify for a 1031 Exchange but still want to enjoy tax deferrals — a deferred sales trust. In this scenario, you “sell” your property to a trust, and the trust will pay you in “installments” over an agreed-upon timeframe. This legal contract has a few major differences from exchanges, so investors must have an in-depth understanding of how it works before they commit.
What Types Of Costs Can Be Included In The Initial Cost Basis?
In real estate, calculating the cost basis of a property involves more than just the purchase price. It's a comprehensive value that includes the initial amount paid for the property, closing costs borne by the buyer, as well as expenses linked to any improvements made to the property (excluding any associated tax credits). Simply put, your cost basis is the original price paid plus all these additional costs, providing a more accurate depiction of your true investment in the property.
Does an Estate Pay Taxes on the Sale of a Home?
Inheriting a home after someone close to you dies can bring significant financial benefits, but it also may come with tax liabilities if you sell the home after receiving it as part of the decedent’s estate.
How Do You Calculate Capital Gains with a Mortgage?
Most homes have a mortgage when sold. Homeowners can deduct their mortgage interest annually. But how does a mortgage affect capital gains when the home is sold for a profit? This is what we'll dig into today.
What Improvements Are Allowed for Capital Gains Tax?
Capital gains taxes on home sales can be significant. However, with some careful planning and record-keeping, homeowners may be able to reduce their capital gains.
Can Rental Losses Offset Ordinary Income?
Many real estate investors also work full-time jobs. Wouldn’t it be great to reduce wage income (i.e., ordinary income) with rental losses?
Do Capital Gains Affect Social Security?
Social Security benefits are paid mainly to retired workers, their surviving spouses and minor children, and people who cannot work due to disability. For retirees, the amount of benefits depends on several factors, including their earnings history and age at retirement. Income that workers obtain through investments and other sources outside of wages or self-employment does not affect the eventual benefit.
