The Realized Team’s Picks
How is Risk Calculated in Stock Investing?
Calculating risk is an involved topic. You can go on and on identifying and mitigating risk. Of course, you have to reach a point that you stop analyzing and deem an investment worth the risk. We're going to look at what goes into that assessment by using a top-down approach.
What is a Defined Contribution Retirement Plan?
A Defined Contribution Plan is a retirement savings plan offered by an employer where an employee contributes funds to a retirement account. The contributions are usually pre-tax dollars.
How Do You Calculate The Rate Of Return On Your Real Estate Investment (Total Holding Period)?
When a real estate investment is sold, the investor will want to know if they came out ahead and by how much. Finding the return on investment requires some calculations. Specifically, we need to look at something called the total holding period return.
Qualified Opportunity Fund Gains and Like-Kind Exchanges
The Opportunity Zone program burst on the scene in late 2017 as a way in which trillions of dollars of capital gains could benefit lower-income communities. If you participate in the program, you could defer taxes on capital gains by rolling them into a Qualified Opportunity Fund (QOF).
1031 Exchanges Escaping the Chopping Block For Now
President Joe Biden signed nearly three dozen executive orders in the first six days of his administration. Most of them involve rolling back policies enacted under his predecessor or dealing with the ongoing Covid-19 pandemic.
Does a 1031 Qualified Intermediary Have to Reside in the Same State Where the Original Property Was Sold?
For an investor engaged in a 1031 exchange transaction, the Qualified Intermediary's correct utilization is one of the key elements to success. The Qualified Intermediary, sometimes referred to as a 1031 exchange accommodator, is an independent entity that facilitates the transfer of proceeds from the sale of the relinquished property into a holding account and from the holding account to the purchase of the replacement property. This intervention is essential to avoid the taxpayer having control over the funds between the sale of the original property and purchase of the replacement.
What Property Can a Delaware Statutory Trust Hold?
We’ve written a great deal about how the Delaware Statutory Trust (DST) can be used to defer capital gain taxes. Furthermore, as the IRS regards DST interests as direct property ownership, they are eligible for use as 1031 exchange replacement properties.
UPREIT vs. REIT
Real estate investment trusts (REITs) are a popular investment vehicle for those who are interested in the potential benefits that come with real estate without actually having to buy and manage the property. Alternative REIT structures emerged to allow for different types of investors. One of these structures is known as an umbrella partnership real estate investment trust (UPREIT). How do REITs and UPREITs compare? We’ll cover the basics of each as well as their benefits and drawbacks.
How is a Delaware Statutory Trust Taxed?
Investing in commercial real estate through a Delaware Statutory Trust can provide many benefits. DST investors purchase fractional shares in a variety of institutional-grade commercial assets they likely wouldn’t be able to afford on their own, such as large multi-family apartment complexes, class A office buildings, or free standing retail buildings with large national franchise tenants. These assets can help diversify your real estate holdings, as well as potentially provide monthly income that can be sheltered from taxation through interest and capital depreciation deductions.
What is a Landlord's Responsibility in a Residential Lease?
As a real estate investor, you may be starting off with residential properties. There are numerous advantages to residential real estate, particularly for those beginning to build their portfolios:
