What Are the Delaware Statutory Trust (DST) Trustee Requirements?
A Delaware Statutory Trust (DST) is a prepackaged, professionally managed, passive real estate investment option for accredited investors. DSTs often have relatively low minimums, but they are illiquid, with holding periods typically ranging from five to ten years.
What Are The Advantages and Disadvantages of Joint Tenancy With Right of Survivorship?
Joint tenancy is a reasonably regular set-up that involves real estate ownership by two or more parties. Common types of shared interests include tenancy in common, community property, or joint tenancy with right of survivorship. Each of these arrangements carries pros and cons. But joint tenancy with right of survivorship (JTWROS) can be helpful in the event of death.
Do You Recapture Depreciation on an Installment Sale?
In a previous blog, we discussed the benefits of selling real estate assets through installment sales. Offering an installment sale agreement could widen the buyer pool. Additionally, this method can help decrease capital gains taxes.
Do You Pay Taxes On Capital Gains That Are Reinvested?
One reason why people invest is to generate extra money. When investors sell that asset for more than what they paid, they come away with a profit, known as capital gains. The problem is that the capital gains will likely trigger a taxable event.
What is a Triple Net (NNN) DST?
Triple Net (NNN) leases and Delaware Statutory Trusts (DSTs) are essential options when investing in real estate. For this reason, we will briefly define the function of each and then dig into how they work together effectively.
Can Capital Losses Offset Dividend Income?
Capital losses result from the sale of a capital asset for less than the basis. For example, if you buy stock for $1,000 and after holding it for two years you sell the stock for $500, you have incurred a $500 capital loss. In contrast, if you buy the stock for $1,000 and after holding it for two years you sell it for $3,000, you have earned a capital gain of $2,000.
How Long Do You Have to Hold Property in a 1031 Exchange?
Suppose you have previously executed a 1031 exchange, selling one property and reinvesting the proceeds into a replacement while deferring the capital gains taxes. In that case, you already know the process requires strict adherence to tight time frames. First, you must identify potential replacement assets within 45 days of the sale and then complete the purchase transaction within 180 days (including the 45 designated for identification.) Meeting this requirement can be challenging, but the reward is the ability to reinvest the entire proceeds from the sale while delaying the need to pay the capital gains taxes.
Does Tenancy by the Entirety (TBE) Have Right of Survivorship?
Tenancy by the Entirety (TBE) is one option among several ways of holding property with one or more others. TBE is only available for married couples who are treated as a single entity for tax purposes. In this usage, both parties have equal rights to the entire property, including these salient advantages:
Do I Have to Pay Tax on Stocks If I Sell and Reinvest?
Earning returns is a primary motivation for investing in stocks. Investors may also seek income through dividends, among other goals, but typically buy stocks hoping the value will increase. Early investors in successful businesses can gain substantially by buying stock and selling it when the share price is higher.
1031 Exchange Summary: Breaking Down the Key Components
The 1031 exchange, often referred to as a like-kind exchange, is a powerful tool in the world of real estate investing. It enables property owners to defer capital gains taxes when they sell one investment property and then reinvest the proceeds into another, similar property.
