What Is Exchange Rate Risk?
All companies face various risks that can affect their business activities' financial and operational success. Some risks can be anticipated and potentially preempted or mitigated, while others may be unexpected and unavoidable. Investors should look for known, disclosed, and potential unknown risks when evaluating investment options. Some types of exposure are common to all businesses, some might be specific to a particular industry or operational structure, and others could be individual or rare. Let’s examine some of the risks many companies face.
How Do You Calculate Realized Gains?
Discussing gains from investments can be confusing. For example, there are short and long term capital gains, deferred gains, and realized versus recognized gains. These distinctions are essential to understand as an investor and taxpayer working to maximize how much you gain and how much of any income you keep.
How Do You Report Interest in a Delaware Statutory Trust (DST)?
Real estate investments may be an attractive way to pursue your financial goals. However, every investor is different, and each has individual preferences for how to invest. For some, direct ownership and management of property may be satisfying, while for others, that approach is too labor-intense. Delaware Statutory Trusts (DSTs) are worth considering for investors exploring passive options. Investing in a DST may provide some potential advantages of direct real estate ownership without the direct ownership management responsibilities. The IRS has defined a DST investment as direct fractional ownership of commercial real estate.
Determining Triple-Net Property Costs
What do the Starbucks on the corner, the Dollar General on the south side of town, and the bank in the regional shopping center have in common? They’re all classified as “retail.” And there’s a good chance that all of them operate under some kind of net-lease agreement. There are three types of net-lease agreements, ranging from single-net to triple net, or NNN.
Can You 1031 Exchange into a Boat?
Real estate investors may think of using a 1031 exchange when managing their real estate portfolio. For example, perhaps you are considering a shift from active management of the property to passive investing. In that case, using a 1031 exchange to defer the payment of capital gains taxes on property you identify for sale may make sense.
What Are Long Term Capital Gains, How Much Are They, And How Are They Taxed?
Selling an investment property for a gain results in either a long- or short-term capital gain depending on the amount of time you’ve held the asset.
Understanding Illiquidity in Real Estate Investing
We hear it all the time, real estate is an illiquid asset. Commonly used in the context of risk, Investopedia defines illiquidity as “the state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value.”1 Opposite to securities that are traded at high volumes, such as stocks and treasury bonds, illiquid assets include private securities and hard assets that are not traded as frequently.
How To Get A Loan For Real Estate Investment
Financing a real estate transaction on an all-cash basis is unrealistic for most people and often not the best use of available cash, even if it is feasible. Fortunately, investors have ample options when choosing a financing strategy for their investments.
How to Transfer a DST after Passing Away
If you own an interest in a Delaware Statutory Trust (DST), you can use it as a wealth transfer tool for future generations. Your DST investments transfer to your designated beneficiaries after you pass away, providing them with the same benefits you had as the original owner.
1031 Exchange Fees to Consider
When doing a 1031 exchange, the tax benefits can be substantial, but there are fees and costs to consider.
