What are Qualified REIT Dividends?
A Real Estate Investment Trust (REIT) is a company that generally invests in real estate. These companies do not pay tax on their income, provided they distribute at least 90% of their profit to their shareholders as dividends. Depending on the type of REIT, this income is generated by rent payments, proceeds of the sale, and loan repayments.
Why Consider a Delaware Statutory Trust?
Real estate investors may be looking for ways to keep more money in their pockets at the end of the tax year. Obviously, there are some cases where taxes cannot be avoided, but there can be a legal way to write off some of your earnings or defer some of the taxes you owe until a later date. Obviously, it’s vital that any tax breaks you find are applied within the framework of the law, as failure to comply with state and federal tax laws can result in hefty fines and more serious penalties. However, knowing how to use tools, such as a Delaware Statutory Trust, can help you legally keep your money in your pocket.
What is a Qualified Purchaser?
A qualified purchaser is defined by the Securities and Exchange Commission (SEC) as an individual or family business with over $5 million in investments, not including a primary residence. A family business would not qualify if its sole function is to invest in a fund.
What is a Mortgage REIT?
A mortgage Real Estate Investment Trust (REIT) is a trust that buys mortgages or offers real estate financing in the form of mortgages and mortgage-backed securities. The mortgages a REIT focuses on can be residential or commercial, or a mixture of both.
What Is a Non-Recourse Loan and How Does it Work
A non-recourse loan is a loan where the borrower is not personally liable for the debt beyond what the collateral named in the loan covers. If the borrower defaults on payments, the lender can not go after assets, income, or other methods of repayment even if the collateral does not cover the remaining balance of the loan.
Section 1031 Property Rollover Rules and Examples
Real estate investors often swap one property for another through 1031 exchanges. By completing exchanges, investors avoid generating a taxable event from the sale of their original properties.
