The Realized Team’s Picks
What is a Real Estate Investment Fund?
Real estate investment funds are a means for investors to pursue the benefits of investing in real estate without directly owning investment property assets. These funds mingle the capital contributed by the investor group and use the money to obtain, manage, and sometimes improve commercial property. A private equity real estate fund is an illiquid investment and typically has a holding period of ten or more years. However, some investment funds do not have a planned termination point.
Are Distributions from a Qualified Opportunity Fund (QOF) Taxable?
A Qualified Opportunity Fund (QOF) is an investment instrument for properties located in designated Qualified Opportunity Zones (QOZs) approved by the IRS. QOZs are areas identified as distressed areas that would benefit from revitalization.
What is the Most Common 1031 Exchange?
A 1031 exchange is a tool that investors can use to defer the payment of capital gains taxes if they sell a real estate asset and reinvest the proceeds. Although long-term capital gains tax rates are significantly lower than the rates levied on ordinary income and short-term gains, the tax can reduce profits by up to 20 percent.
Are Capital Gains Considered Income for Mortgage?
When applying for a mortgage, lenders want to be sure that borrowers can handle monthly payments and still have enough money left to pay bills and live on. Given how regulated the mortgage industry is, the income process requires a lot of analysis.
What is the Difference Between Tenants by the Entirety (TBE) and Tenants in Common (TIC)?
There are various ways in which individuals can hold shared ownership of a property. Two common forms of joint ownership are Tenants by the Entirety (TBE) and Tenants in Common (TIC). While both arrangements involve multiple individuals owning a property, they differ in several key aspects.
When Do I File Form 8824?
IRS Form 8824 is a form submitted to the IRS when a like-kind exchange takes place in real estate investing. A like-kind exchange, also referred to as a 1031 exchange, is when an investor exchanges one investment property for another similar property, potentially deferring capital gains taxes under section 1031 of the IRS code.
The Benefits of Investing in a Delaware Statutory Trust with Other Investors
DSTs (Delaware Statutory Trusts) provide investors an avenue for 1031 exchanging into investment properties. It can be difficult to find a viable 1031 exchange property. Because DSTs are 1031 exchange eligible, they have a fairly large pool of potential properties to exchange into.
What is the Minimum Investment In a Qualified Opportunity Zone Fund?
Qualified Opportunity Zones (QOZs) were established in 2017 to encourage investments in distressed or low-income areas by offering potential tax benefits to investors. A Qualified Opportunity Zone Fund is organized for investing in QOZ properties.
Can You 1031 Exchange Forever?
A 1031 exchange is a great vehicle for deferring gains on the sale of a property. The tax bill can be quite burdensome if the property being sold has appreciated markedly. Investors can potentially get around this problem by utilizing a 1031 exchange, pushing their taxes due on the gain out into the future.
Why Do Companies Do Net Leases?
A net lease has benefits for both tenants and landlords. These leases come in different forms and are signified by their number of “N”s, such as NNN, which means triple net lease.
