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.
Is Direct Deeding Allowed on a Reverse 1031 Exchange?
In 1990, the IRS ruled that it was no longer necessary to use sequential deeding in a 1031 exchange transaction. Under sequential deeding, the seller would give the deed to the Qualified Intermediary (QI), who would then hand it to the buyer. Today, many investors choose to use direct deeding rather than sequential in a 1031 exchange.
Is Depreciation Recapture Subject to Net Income Investment Tax?
Selling a rental property for a gain often means the investment was a success. However, as is usually the case, the IRS will take notice and want a piece of the action. In addition to taxes on capital gains, investors may owe depreciation recapture and net income investment taxes.
Ways to Allocate Assets in a Portfolio
Asset allocation is all about allocating your investments among different asset classes and diversifying your portfolio to potentially minimize risk, strive for a higher return, and work towards your investment goals. How you allocate your assets depends on how much risk you are willing to take and the amount of risk you can take to achieve those goals within a certain timeframe.
