How Are REITs Taxed?
Real Estate Investment Trusts, or REITs, can offer investors many of the potential benefits associated with real estate investments without the common pitfalls of direct property ownership.
What Is a Step-Up in Basis?
Basis plays an important role in real estate. Typically, it’s the all-in cost of an asset, including sales tax and capital expenses incurred during acquisition such as appraisals, attorney charges, sales commissions, loan and document fees, mortgage insurance premiums, inspections, and other common closing costs.
Do Bonds Help Manage the Overall Risk of an Investment Portfolio?
Excessive risk is equated with excessive returns. But not everyone has an interest in high-risk, high-return portfolios. For investors who want to manage risk in their portfolio, are bonds the answer? A financial advisor will likely say yes, but why? Let’s dig into the details.
What Is a REIT?
To some investors, one of the most appealing aspects of investing in real estate is the opportunity to earn truly passive income. While some people want to be actively engaged in their investment properties, others covet the potential to have their properties generate a passive form of income. However, it’s important to note that there are multiple types of passive real estate investments. Understanding what those options are and which one is right for you can help ensure that you’re making the appropriate choice with your money. One such example of a passive real estate investment tool is a REIT.
What Is A Tax-Free Savings Account And How Does It Work?
Canadians looking to build their wealth for the future have many options. One of these is a tax-free savings account, or TFSA. Not only does this function as a savings account, but it also can serve as an investment vehicle. Here’s what you need to know about Canadian tax-free savings accounts before you open one.
How To Use an LLC as a Tax Shelter
Investors may look for ways to reduce income, which has the effect of reducing taxes. Investors can do this by claiming expenses and deductions against income. Usually, this process is the result of running a business or being involved in a specific type of investment. In other words, there is some structure over the assets that produce income along with expenses and deductions. This is called a tax shelter.
Can You Get Tax Breaks for Opportunity Zone Employees?
Between October 2018 and December 2019, the Internal Revenue Service and the U.S. Department of the Treasury released three guidance reports on the Opportunity Zone program. The guidance focused on clarifying the parameters of this economic revitalization/tax deferral program, outlining everything from the 90% asset test to gains that qualify for Qualified Opportunity Zone (QOZ) investments.
Can a Single-Family Home Be Purchased Under a 1031 Exchange if a Multi-family Home Is Sold?
The 1031 exchange is a tool that investors seek to use to help manage capital gains tax liability by reinvesting the proceeds from the sale of investment property into like-kind assets. The name "1031 exchange" comes from the relevant section of the Internal Revenue Code. Originally it referred to an exchange of actual farmland, but today it applies to taxpayers who hold real property for investment.
Can Qualified Dividends Be Used for Opportunity Zones?
Ever since the Opportunity Zone program came into being, questions have been asked about timelines, approved investment types, and where the federally designated Qualified Opportunity Zones (QOZs) are located.
What Are the Advantages and Disadvantages of a Tax Haven?
While a tax haven may sound like a secret tax scheme available only to the wealthy, it’s actually a method for saving on taxes that’s available to nearly everyone. There are a lot of misconceptions about tax havens. Some think it’s an elaborate scheme designed for the rich to hide their income from the government. Others believe it’s an efficient way to avoid taxes completely. Both are untrue.
