How Are Condos and Tenants-In-Common Properties Different?
Tenancy-In-Common (TIC) is an intriguing term in investing. It implies occupancy, but traditionally TIC participants have not occupied the properties in which they invest. However, that status is changing somewhat, as more TIC investors view the ownership structure as an opportunity to buy a home, possibly for the first time.
Can You 1031 Exchange From a Rental Into a Vacation Home?
If you’ve ever dreamed of selling your dreary rental home in the Rust Belt and completing a 1031 exchange into a relaxing vacation home in a sunny beachside community, keep on reading.
Where Are Opportunity Zones?
Qualified Opportunity Zones (QOZs) are tracts of land in distressed communities where investors can buy properties that qualify for tax benefits. QOZs were introduced in 2017 as part of the Tax Cuts and Jobs Act. QOZ designations began as early as 2018 and have become an excellent tool for investors looking to improve underdeveloped areas.
Is a Tenants in Common (TIC) Interest a Security?
Stocks are a convenient way for investors to trade the profit/loss of a company. This same tradeability and lack of investor participation make stocks securities. Do the owners of real property structured under a tenants in common hold a security? That is the question we’ll delve into in this article.
What Is the Maryland Statutory Trust Act?
The Maryland Statutory Trust Act has its origins in the 1999 Maryland Business Trust Act.¹ The Maryland General Assembly revised the original business trust act in early 2010, and those provisions were signed into law in June of that year. The Maryland Act was further amended in 2014, and those changes went into law the following year.
What is the Most Conservative Asset Class?
Conservative investments can be an important aspect of a well-diversified portfolio, especially as you near or enter retirement.
What Is A DST, And How Are They Used For 1031 Exchanges?
DST is an abbreviation for Delaware Statutory Trust, a legal entity constructed under Delaware law. Despite the name, neither the property nor the investors need to be located in Delaware. In a DST, each investor has an ownership interest in the Trust, which in turn owns the property. Investors are known as “beneficiaries” of the Trust. For these reasons, the security that an investor in a DST owns are called “beneficiary interests.” The IRS treats DST beneficiary interests as direct property ownership, thus qualifying for a 1031 exchange.
Who Pays Capital Gains Tax?
Capital gains fall into a category of income called unearned income. This separates them from income that people earn at their job (i.e., wages). Because of this difference, capital gains may be taxed differently from earned income. In this article, we’ll look at how capital gains are taxed and who has to pay them.
What Is a 70/30 Asset Allocation?
Asset allocation is an important aspect of portfolio diversification, as well as a means to help investors manage their exposure to risk.
How Do 1031 Exchanges Work?
In the simplest terms, a 1031 Exchange allows a taxpayer to defer the recognition of capital gains tax due from the sale of investment property by replacing the sold property with a "like-kind" property of the same or greater value. Section 1031 of the Internal Revenue Code originally applied to personal property as well as real estate, but was amended by the Tax Cuts and Jobs Act to remove exchanges of intangible and personal property. To successfully defer the capital gain, the taxpayer must use the profit from the sale to purchase a like-kind property within 180 days.
