Which Characteristics Make a Security Most Subject to Liquidity Risk?
All investors face some level of potential liquidity risk. Some securities are more prone to liquidity risk than others. In an effort to manage liquidity risk, there are particular characteristics that you can look out for. Let’s walk through them.
Can a C Corp Invest in an Opportunity Zone?
Much of what has been written about the Opportunity Zone program seems to focus on individual investors and specially formed LLCs that are treated as partnerships or corporations. In these arrangements, such entities funnel capital gains created from the sale of investments into Qualified Opportunity Funds (QOFs). Those funds are then invested in Qualified Opportunity Zones, or QOZs.
What Is Alternative Minimum Tax (AMT), and Who Pays It?
The alternative minimum tax or AMT is in place to ensure that all taxpayers pay at least some taxes. Under tax law, taxpayers can strategically use tax deductions and credits to significantly reduce the amount of taxes they owe. As a result, those with high incomes may end up with lower tax obligations. The AMT is intended to prevent taxpayers from avoiding their share.
Tenant In Common (TIC) Purchase Interests Agreement: What it Includes & Important Items to Consider
Tenancy in common (also referred to as TIC ) is one way for investors to own real estate in concert with others. In a TIC structure, the co-owners can own different shares (in other words, Owner A might hold 90% while Owner B holds the remaining 10%; or ten co-owners could have equal shares), and they do not have the right to survivorship if one of the other owners dies. Tenancy in common is sometimes conflated with joint tenancy, but those two differences are fundamental: in a joint tenancy, the owners hold equal shares and maintain the right to survivorship.
What Is the 65-Day Rule?
While income tax rates and rules for individual and married taxpayers are complicated enough, the application of rates and thresholds to trusts adds a layer of complexity to financial planning. The 65-day rule relates to distributions from complex trusts to beneficiaries made after the end of a calendar year. For the first 65 days of the following year, a distribution is considered to have been made in the previous year.
Can You Do a 1031 Exchange from a Residential to Commercial Property?
A residential property that is not a primary residence and meets the 1031 exchange criteria can be exchanged into a commercial property. Outside of following the 1031 exchange rules, there really aren’t any special considerations. The investor is basically going from a smaller investment property to a larger one. In this article, we’ll look into the details of what’s involved when doing a 1031 exchange from a residential to commercial property.
What Are the Requirements to Form a Delaware Statutory Trust (DST)?
Delaware has long been known to offer a corporate-friendly environment, which offers benefits relating to tax liability, convenience, and legal protection in corporate affairs. Delaware Statutory Trusts were formed per the Delaware Statutory Trust Act, which was written to simplify the arrangement of a structured real estate transaction (or other assets).
What Is a Hybrid REIT?
REIT Investment Basics At the foundation, a Real Estate Investment Trust (REIT) owns, finances, or invests in real estate or real estate-related assets. Investors can buy shares in REITs as they would invest in equities, but they are purchasing an interest in a real estate portfolio or a particular asset. There are some specific characteristics of REITs, including the following:
What Are the Fiduciary Duties Involved with Delaware Statutory Trust (DST) Investment?
Within the Delaware Statutory Trust structure, there are typically two participants: trustees and beneficiaries. The DST offers management and ownership flexibility, but there are certain duties and obligations that must be fulfilled by each party.
