Can I Use 401(k) Unrealized Gain Loss to Invest in Opportunity Zones?
The Opportunity Zone program is remarkably straightforward. Passed under the Tax Cuts and Jobs Act of 2017, the initiative encourages you, the investor, to place capital gains into a Qualified Opportunity Fund (QOF). The fund, in turn, invests in federally designated, low-income Qualified Opportunity Zones (QOZs). In the meantime, you can defer paying taxes on those capital gains until Dec. 31, 2026.
What Are Investing Activities In Cash Flow?
Cash flow is important because it is what ultimately gives you a paycheck. So, it is essential to the health of a business to understand what investing activities are and how they impact cash flow.
How to Exchange Real Estate For a Delaware Statutory Trust Property
Many real estate investors are familiar with the tax benefits of a 1031 exchange. By exchanging one property into a “like-kind” replacement property, the investor is able to defer gains. However, 1031s come with some strict deadlines that can be difficult to meet. That’s where a Delaware Statutory Trust (DST) property comes in.
Opportunity Zones: Ordinary Income Versus Capital Gains
When the Economic Innovation Group, a bi-partisan, public-policy organization, introduced the concept of Opportunity Zones several years ago, the idea was to make use of the “trillions of dollars in unrealized capital gains in stocks and mutual funds . . .” So, when the Opportunity Zone program was made official as part of the Tax Cuts and Jobs Act of 2017, investors had a way of investing their capital gains into Qualified Opportunity Funds (QOFs), in an effort to help economic development in federally designated Qualified Opportunity Zones.
How Gauging Real Estate Risk Differs from Gauging Stock and Bond Risk
You’ve heard it before, and we will continue to repeat it: There is no such thing as a risk-free investment. Yes, some investments carry a lower degree of risk. And, risk can be managed through due diligence, plenty of research, and self-analysis pertaining to risk tolerance. But the act of investing requires acceptance of risk.
What is a 457(b) Retirement Plan?
While most people are familiar with 401(k) retirement plans, and many have at least heard of a Roth IRA and the nonprofit sector 403(b) plans, the 457(b) has not received the same widespread attention. This relative anonymity is likely because these plans are among the least common of the defined-contribution retirement plans. 457(b) plans are IRS-approved employee retirement programs offered by some state and local government agencies and a select few nonprofit employers. (Those offered by nonprofits may also be found in section 457(k) and vary slightly from their (b) counterparts.)
What Does A Triple Net Lease Include?
The lease structure on a potential investment property means a lot in regards to how much skin you’ll have in the asset. Triple net leases are among the most popular lease agreements in commercial real estate because they shift responsibility for a property’s variable costs and operating expenses from the owner to the tenant.
Do I Need A Lawyer For A 1031 Exchange?
The 1031 exchange process can be complicated, especially for novice or first-time real estate investors. Completing a successful exchange requires strict adherence to deadlines and other IRS exchange provisions.
Why Would a Commercial Landlord Insist on a Triple Net Lease?
A triple net lease (NNN) benefits commercial landlords by reducing the potential risk that comes with a commercial lease. The triple net lease is a lease agreement between a tenant and landlord where the tenant agrees to pay all of the expenses of the property. These expenses include property taxes, property insurance, and maintenance, in addition to rent and utilities.
Government Accountability Office Weighs in on Qualified Opportunity Zones
Oversight and reporting concerns have been part of the Opportunity Zones program since it came into effect as part of the Tax Cuts and Jobs Act of 2017. The Brookings Institution’s 2018 report, “Learning from Opportunity Zones: How to Improve Place-Based Policies” decried the lack of “necessary data and defining criteria” when it came to targeting distressed communities under the program. In late 2019, Sen. Ron Wyden (D-OR) sponsored S.2787, the “Opportunity Zone Reporting and Reform Act.” The legislation focuses on Qualified Opportunity Fund (QOF) requirements, as well as modifications to the Qualified Opportunity Zones (QOZs). The bill was referred to the Senate finance committee, where it remains.
