How Does Depreciation Help with Taxes?
As an investor, you probably already understand that taxes are a part of life. And, if you are an investor with a knowledgeable tax-planning expert on your side, you’ve probably figured out how to reduce or defer some of those taxes. One such way to do this is through depreciation.
Are Private REITs Registered with the SEC?
Real estate investment trusts, also known as REITs, are a tool for real estate investors seeking to earn passive income. REITs allow investors to pool their money to own shares in a real estate investment. Ultimately, many REITs can be purchased the same way that stocks are purchased on the New York Stock Exchange. While most REITs are publicly traded, and thus regulated by the SEC, there are also private REITs. Understanding how private REITs work, how they are governed, and the potential benefits associated with investing in them can help you make an educated decision about whether or not private REITs are something to consider adding to your investment portfolio.
Are C Corp Dividends Subject to Net Investment Income Tax (NIIT)?
Your dividend income from a C corporation is subject to the net income investment tax, or NIIT. C corp stock produces dividend income to its shareholders, which is treated as property held for investment purposes.
Are IRA Contributions Tax Deductible?
An aspect of successful investing can be using legal tax deductions to your advantage in order to maximize your annual returns. While many people think about the New York Stock Exchange, real estate, and other investment methods when they consider investing, it’s also important to understand how to utilize an IRA in an attempt to build your own net worth. IRAs can be useful tools for investors who are looking for a way to further diversify their portfolio. Not only should you understand how to use an IRA, but also, how to use the tax advantages associated with them.
Can Tenants-in-Common Evict Each Other?
According to the Merriam-Webster dictionary, the definition of eviction is “the dispossession of a tenant of leased property by force or especially by legal process.” Thus, eviction is typically a process in which the landlord (owner) of a property removes a tenant (residential or commercial) from the premises, either for nonpayment of rent or to achieve some other purpose. For residential rentals, various states have laws that govern how evictions may be handled, and during the Covid-19 pandemic, landlords have also been required to navigate through federal moratoriums.
Can Medical Equipment Be Used as Improvement in Opportunity Zones?
Plenty has been written about the Opportunity Zone from the point of view of Qualified Opportunity Business Zone Property, or QOBZP. However, when it comes to defining “property,” the main focus tends to be “real estate.” As such, many of the examples pertaining to assets and substantial improvement involving Qualified Opportunity Zones (QOZs) and their investments via Qualified Opportunity Funds (QOFs) range from ground-up construction to renovation or rehabilitation.
How Much Are 1031 Exchange Like-Kind Broker Fees?
Real estate investors can employ a 1031 exchange to sell an investment property and reinvest the proceeds into a “like-kind” replacement without paying capital gains taxes, depreciation recapture taxes, or NIIT (Net Income Investment Tax). This tool may offer a significant advantage in circumstances where an asset has appreciated significantly. However, there are costs associated with the exchange transaction. These costs vary depending on the specific nature of the 1031 exchange.
Who Can Invest in a Delaware Statutory Trust?
A Delaware Statutory Trust (DST) is a sophisticated investment option that offers individual investors access to fractional ownership of commercial properties they would not likely be able to own otherwise. The assets held by DSTs are typically similar to properties owned by large institutional investors, including REITs, insurance companies, and retirement funds. Individual investors may also appreciate the eligibility of DST offerings for 1031 exchange transactions, both for entry and exit.
Where Can I Buy REITs?
You may be interested in investing in real estate but aren’t sure where to start. You may not have the budget to invest in larger properties, but know they can provide income opportunities.
Are Refinancing Closing Costs Tax Deductible on Rental Property?
Rental property investors may wonder if the closing costs associated with refinancing their rental properties are tax deductible. While it may seem like a simple question, certain closing costs must be disclosed on your tax return. There are some factors that determine whether the closing costs on your refinanced mortgage are tax deductible.
