What Is Structural Risk?
Contrary to what the name suggests, structural risk has nothing to do with the physical structure of the building. Structural risk refers to the financial structure of the investment and the rights that the structure provides to the individual participants. No real estate investment is invulnerable to risk, and investors must understand the potential dangers.
Can a Tenant in Common Rent or Lease Their Share of Property?
A Tenant in Common arrangement, also known as Tenants-in-Common, or TIC, involves a shared ownership of a property. In this type of arrangement, each owner owns a specific “piece” of the asset; and many times, those pieces, or shares, can be of unequal sizes. This is also known as fractional ownership, and it can help investors to better diversify their portfolios, or to have access to higher quality assets.
Can a Tenant In Common Mortgage Property?
Gathering three or more people into a tenancy in common (TIC) arrangement can be one way to buy and hold real estate. This type of set-up can help investors secure better-quality real estate, with a potentially higher targeted cash flow.
Can an S Corp Do a 1031 Exchange?
A 1031 exchange isn’t just for a solo investor seeking to defer capital gains taxes on the sale of a commercial investment property.
What Is Asset Allocation in a 401k?
Asset allocation in your 401(k) helps manage investment risk. You don’t need to be a seasoned investor to have a say in how your assets are going to be invested; however, you should be aware of some of the basics.
What Is Replacement Cost Risk?
Before investing in real estate, investors typically evaluate the property — which is a process that determines the economic value of an investment — and more accurate valuations can help investors make better decisions. When looking at cost, replacement cost is a common part of property valuation and investors look at this to determine whether the property is under or overvalued. Even with proper property valuation, there are many risks associated with investing in real estate.
How to Record Payments to Qualified Intermediaries Via Form 1042-S
Form 1042-S is sent to non-U.S. residents who have income in the U.S. Income is from U.S.-based entities. This income includes distributions from real estate properties or funds. A Form 1042-S must be filed for each type of income reported.
Passive Income From Rental Property: Different Investment Structures
Being a landlord isn’t easy, but seeking income from rental property isn’t always stressful, time-consuming, or laborious. There are several different types of investment structures designed to help pursue potential passive income. Each requires different amounts of initial investment as well as varying levels of skills and knowledge.
Are Parks Eligible For Opportunity Zones?
Qualified Opportunity Zones originated in the Tax Cuts and Jobs Act which became law in December of 2017. The relevant portion of the legislation allows investors to defer taxes on capital gains if they reinvest the proceeds into 8,700 designated areas called Qualified Opportunity Zones, which the federal government has highlighted as economically challenged.
Do You Pay Income Tax on Rental Income?
When you purchase a rental property as a real estate investment you will likely pay income tax on your earnings. However, there might be ways to lower your tax burden through deductions on a rental investment.
