How Much Do You Have to Reinvest in a 1031 Exchange?
Real estate investors not only focus on picking the right properties, but savvy investors may also understand how to use the current Tax Code to their benefit. Policymakers have put certain provisions in the existing Federal Tax Code that incentivize investors into not only making an initial investment, but also benefits associated with maintaining their position as an investor. One such example of an incentive is the 1031 exchange. Understanding how these exchanges work, what they are, and the laws that surround them can ensure that you’re in a position to potentially enjoy sustained success as a real estate investor.
Can You Combine Opportunity Zones and New Market Tax Credits?
Opportunity Zones and New Market Tax Credits both provide tax benefits to taxpayers who invest directly into low-income neighborhoods that historically have been overlooked when it comes to new investment capital.
How To Calculate Front-End Ratio For Investment Properties
When deciding whether or not a potential client is a reasonable loan risk for a mortgage, lenders look at several factors. One of the factors is known as front-end ratio. In this blog, we’ll explain what front-end ratio is and show how to calculate it.
How Do You Calculate Tax Liability?
The U.S. tax code can be a challenge when calculating your tax liability. It is time-consuming and tedious. For example, if you fall into the 22% tax bracket, that doesn’t mean that your entire income will be taxed at 22%. This is because the tax system is progressive.
Do I Need an Attorney for a 1031 Exchange?
Utilizing a 1031 exchange is a way to retain some portion of the money you have earned on an investment property. A 1031 exchange allows you to carry over capital gains from the sale of your investment property and reinvest it into a like-kind real estate opportunity, allowing you to keep more of your funds working to grow your portfolio.
What Is Estate Tax?
According to the Internal Revenue Service, the Estate Tax is “a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death.” The property includes cash, securities, real estate, trusts, business interests, and “other assets.”
The History of Delaware Statutory Trusts
Delaware statutory trusts (DSTs) are independent legal entities created through the Delaware Statutory Trust Act. These trusts hold title to one or more income-producing properties that can include multi-family, retail, office, industrial, and similar commercial real estate assets.
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.
