What is Revenue Procedure 2002-22?
In March of 2002, the IRS issued guidance for investors regarding undivided fractional interest when purchased as replacement properties in 1031 exchanges. In the form of Revenue Procedure 2002-22, the advice superseded and repealed Revenue Procedure 2000-46. 2002-22 issued the guidelines under which taxpayers could seek an advance ruling for treating undivided interests as allowable assets under Section 1031.
Making the Most of Inherited Property
For someone new to property investment, the occasion of an inheritance may be the start of a significant opportunity. If you have just inherited property and want to ensure that you lay the foundation to grow your wealth from the beginning, it’s a good idea to seek out trustworthy advisors to guide you. In this situation, step one is probably to determine your tax situation.
What is an Absolute Net Lease?
In commercial property investing, there are numerous types of leases with different expense structures. Though not typical, the simplest is a gross lease, in which the tenant pays a base rent, and the owner is responsible for managing all other expenses, including taxes, insurance, maintenance, and repairs. Net leases are more popular than gross, with subtypes single net, double net, triple net, and absolute. Generally speaking, a net lease assigns the following expenses to the tenant:
What is a SERP Retirement Plan?
A SERP retirement plan, or supplement executive retirement plan, is a non-qualified deferred compensation retirement plan offered by companies in addition to the company standard retirement plan to highly paid employees. Because standard retirement plans such as the 401(k) have limited annual contributions, SERP retirement plans are used to reward top executives with supplemental retirement contributions.
Interest Deductions, Capital Expenditures, Depreciation, And Other Tax-Oriented Facets of Real Estate Investing
As a property owner, you may be looking for ways to balance some of your real estate related income with deductions. How can you minimize the bite that taxes take out of your earnings? Consult your tax advisor to ensure that you are claiming all the deductions to which you are entitled. Here are some to look out for.
How to Provide Individual Investment Options for Multiple Stakeholders in an LLC
Limited liability companies (LLCs) have been a preferred business entity among multiple stakeholders since the 1980s. Many legacy Limited Liability Corporations were formed by family members to pool funds to invest in commercial real estate. Perhaps the most famous example is Walton Enterprises LLC, the Limited Liability Company founded to serve the beneficiaries of Walmart founders Sam and Helen Walton. Most family trusts and business partnerships won’t reach those same lofty heights, but they still remain a useful tool for members to make larger capital investments than they could as solo investors.
Are Mortgage Investments A Valid Opportunity Zone Property?
Just about anyone familiar with the Qualified Opportunity Zone (QOZ) program understands the basics of how it operates. The initiative, part of the Tax Cuts and Jobs Act of 2017, led to the designation of approximately 8,700 federally designated lower-income census tracts -- opportunity zones. In order to stimulate economic development in these zones, investors funnel their capital gains into Qualified Opportunity Funds (QOFs).
How To Calculate Capital Gains Tax After Selling an Investment Property
Capital gains taxes are applied to any proceeds derived from your real property investments. How much you’ll owe depends on how long you held the asset before selling and your income tax bracket for the tax year.
What Are Closing Costs, Who Pays For Them, And How Much Are They?
Closing costs are a part of almost every real estate transaction. The key questions we hear from clients are: What are closing costs? Who pays them? How much are they? There is no quick and easy answer because there are many variables that go into determining closing costs. It all depends on the type of loan, property cost, and location of the property. Each specific transaction will vary on who pays closing costs and exactly what they will be.
Can A Delaware Statutory Trust Be A Custody For Securities?
When you open a brokerage account to trade stocks, the account must first be funded before any stock trades occur. The broker uses a separate entity called a custodian to hold your cash. As trades are opened and closed, cash moves in and out of the custodian account.
