The Realized Team’s Picks
Maximizing After-Tax Cash Flow Through Financial Tools Online
Investors are conditioned to look at pre-tax returns. It’s a learned behavior that can be traced back to the day that first paycheck arrived. But alas… somewhere between gross and net, the wages were placed in a tax grinder. Years and decades later, many investors still struggle to remember that the IRS has a voracious appetite. The key is not to focus so much on the top dollar amount; what matters at the end of the day is how much you can put in your pocket after taxes.
Tax Basis in Real Estate Part 1 - What is Basis?
One of the first questions, and frankly one of the most important, I typically ask real estate owners who are considering or are in the midst of a 1031 exchange is “what is your adjusted basis in the property being sold?” I dare say that 95 percent of the real estate owners I speak with on a daily basis don’t know the answer to this question.
The End of Non-Real Estate 1031 Exchanges?
Our previous blogs on 1031 Exchanges focus mostly on real property, or real estate. However, the Internal Revenue Code (IRC) 1031 also covers what is dubbed “personal property.” In other words, property held for investment and/or business purposes, but that isn’t real estate, is also eligible for 1031 exchanges - at least for the current time.
Comparing DSTs And UPREITs
How do Delaware Statutory Trusts (DSTs) and Umbrella Partnership Real Estate Investment Trusts (UPREITs) differ, and when might you want to use one over the other? In this article, we start by looking at a few similarities between these two structures and then dive into their differences.
Cash Flow: More Than Just Money
The term “cash flow” brings up images of, well, a flow of cash. And, the basic meaning isn’t too far off the mark. Overall, cash flow is defined as the amount of profit (mainly consisting of rental income) from an investment property, minus debt service payments (i.e., mortgage payments), capital expenditures for upgrades, property expenses, and vacancy/credit loss.
What Happens When It's Time For Me To Sell My Investment Property?
There are two general paths that you can take when it comes time to sell your investment property. One is to defer capital gains taxes and invest all of your gains into another property. The other is to cash out and do whatever you like with the money from your investment property sale. But for that flexibility, you’ll have to pay taxes on capital gains. In this article, we’ll look at both options so you can decide which may be right for you.
Recession Resistant Property Types Part II
In our first article on recession-resistant property types, we went over a broad range of property types that tend to perform well during a recession. In this article, we’ll look at three more types — office, medical office, and retail. We’ll also compare certain subgroups that performed poorly during the last recession with other subgroups that fared much better.
Forbes Real Estate Council: Your 180-Day Clock Isn't What You Think It Is
Our Chief Executive Officer, David Wieland, published a piece on his Forbes Real Estate Council column, entitled "Qualified Opportunity Zones: Your 180-Day Clock Isn't What You Think It Is."
What Eligible Capital Gains Can I Invest In Opportunity Zones?
Opportunity zones (OZs) provide an opportunity to invest capital gains in real estate while deferring tax payment on those gains. It’s important to know which capital gains are eligible. Otherwise, you might invalidate your OZ (opportunity zone) tax benefits. In this article, we’ll dig into the details of what makes an eligible opportunity zone capital gain.
The Impacts Of A Recession On Real Estate: Part 2
Coronavirus has caused a stir in the international socioeconomic climate, wrecking havoc both in the form of lives and economies since its widespread discovery early 2020. In this blog, we take a look at its potential impact on several real estate sectors — namely healthcare, hospitality, and senior living.
