What is a Replacement Property?
Insightful real estate investors use tax-deferred exchanges to help build wealth through the deferral of capital gains taxes. To take advantage of this tax law, investors must use the proceeds of property sales to purchase a replacement property.
What Is Currency Risk?
Globalization and the internet have expanded investment opportunities. Depending on your investment appetite, you could invest in a German broad market index or tap into an authorized agent to acquire a United Kingdom government bond.
What Are the Rules for Doing a 1031 Exchange on a Rental Property?
Capital gains taxes can eat into the profits a real estate investor makes when he or she decides to sell the property. However, it's possible to avoid paying taxes on your capital gains if you implement the right strategy while investing in real estate. One of these tactics is a 1031 Exchange, which allows real estate investors to exchange one investment property for another.
What Is Inflation Risk?
Several things occurred in 2021. COVID-19 variants continued to mutate and spread, even as vaccines were more available. Climate change generated extreme weather events worldwide, from raging storms to drought to wildfires. And inflation in the United States pushed to a 40-year high.
Are Realized Gains Taxable?
What Is the Difference between Realized and Unrealized Gains? A realized gain is an investor's amount of gain when selling an asset. The amount is determined by subtracting the adjusted basis from the net sales price. For example, suppose the investor bought a property for $200,000 and spent $50,000 to improve it, then sold it for $350,000. If there were $30,000 in closing costs, the net sales price is $320,000 while the adjusted basis is $250,000, leaving a realized gain of $70,000. In contrast, an unrealized gain can be considered a paper gain. For example, suppose the investor buys a property for $400,000, and while they own it, the value rises to $750,000. The investor has a theoretical gain of $350,000, but the gain remains unrealized unless they sell the asset.
What Is the Difference between Systematic and Unsystematic Risk?
Managing your exposure to risk is an important aspect of investing. Every type of investment carries some degree of risk, and reducing your exposure to the factors that can negatively impact your investment capital could be the difference between red or black ink on your balance sheet.
Is a Charitable Remainder Trust Revocable?
Leaving a financial legacy can take on many different forms. Creating a charitable remainder trust to benefit your favorite foundation, museum, community group, university or nonprofit organization is an avenue to consider when deciding how to commemorate your financial achievements and cement a fiscal legacy.
What Is a 1031 Exchange Buyer?
Investing in real estate can be a boon to your investment portfolio, but we believe one should perform extensive analysis on any potential investments. If you're looking to purchase an investment property, there are many strategies you can use to complete this purchase, one of which is a 1031 Exchange. Here is some information on 1031 Exchange buyers and how to become one.
What is Financial Risk Analysis?
The risk of losing money is an inherent aspect of investing. The process of assessing and measuring risk to determine an investment’s potential viability, as well as coming up with ways to potentially mitigate certain risk factors, is called a financial risk analysis or financial risk assessment.
How Much Does a Revocable Living Trust Cost?
Determining how your valuable assets will be handled after you pass is a crucial aspect of estate planning. Many people place important assets such as real property, cash, brokerage and money market accounts, bonds, business interests and other important financial resources and possessions into living trusts while they are still alive so that they know exactly who will receive these assets upon their death. Revocable living trusts differ from other types of trusts because the grantor – the creator of the trust – can change, alter or void the provisions of the trust at any time.
