How Many Retirement Plans Are There?
The sooner you prepare for retirement, the better. In fact, the recommendation is to begin saving as soon as you earn an income. Does that mean if you haven’t gotten a jump start on saving that you won’t be able to have a comfortable retirement? Absolutely not. There are so many retirement plans, all with different drawbacks and benefits depending on your age and financial situation. In fact, The Internal Revenue Service (IRS) lists 14 types of retirement plans.
Sponsor Risk and Its Role in Delaware Statutory Trust Entities
When going into a Delaware Statutory Trust (DST) investment, your DST Sponsor is just as important to your success as the property. What seems like a great property in a top location managed by an inadequate Sponsor could mean potential risk in your DST investment.
What Is An Insured Retirement Plan?
An insured retirement plan (IRP) is a strategy used to build a tax-deferred investment inside of a life insurance policy during your working years. When you retire, instead of withdrawing these funds directly from the life insurance policy, you use the policy as collateral on a loan. At retirement, you can establish an annual line of credit against the policy where the maximum loan percentage is connected to the type of investment within the policy. This strategy and the earnings on the money within the insurance policy and the loan from this policy act as a tax shelter for the investor.
An Overview of The Delaware Statutory Trust Act
In 1988, Delaware enacted the Delaware Business Trust Act, which was later changed to The Delaware Statutory Trust (DST) Act in 2002. The DST is a statutory entity that is governed by Chapter 38, Part V, Title 12 of the annotated Delaware Code. The DST Act was passed to allow a lawfully recognized and flexible alternative business entity and is periodically amended to allow developments in business practices.
How To Avoid Capital Gains Tax On Stocks
There are several methods a taxpayer can use to avoid or defer paying the capital gains tax on stock appreciation. The simplest is not to sell the stock, although even that is not a sure bet. First, remember that if you hold stock for less than a year and then sell it, the tax calculation will be for ordinary income rather than a capital gain. By keeping the security for one year, you are already enjoying the benefit of savings. Still, if the stock has appreciated considerably, the tax due on the capital gain may be significant as well. If you prefer to defer or avoid the tax on the growth, you may want to consider these options.
What Is The Purpose Of A Delaware Statutory Trust?
The small state of Delaware is a financial haven for corporations and investors due to many of its friendly ordinances. Delaware offers advantageous conditions to companies that incorporate there, including privacy and lower taxes than many other states. Delaware is also one of the few states in America with statutory trust law, in contrast to states using common law trusts. Delaware adopted the Delaware Business Trust Act in 1988 (and changed the name in 2002 to the Delaware Statutory Trust Act).
Mortgage Forbearance And Eviction Moratoriums
With the shutting down of the economy due to COVID-19, many tenants are without a job, which means they also can’t pay their rent. For landlords, this means a significant cut in property cash flow. However, because cash flows have been reduced doesn’t mean expenses have also been reduced. With active tenants on the property, expenses are likely to remain at previous levels. How do landlords survive in this type of situation?
What Is Net Cash Flow And How Do You Calculate It?
Net cash flow is the difference between the cash coming into a business versus the cash going out. Knowing what net cash flow is, how it is calculated, and understanding how to interpret the calculations are all essential to running a successful business. A simple explanation of calculating net cash flow is subtracting expenses and liabilities from the total cash in a business - but we will cover that more later. The calculation can help assess many business metrics like gains and losses over time, the financial stability of the company, and can be used to make business decisions.
What Happens To Depreciation Recapture In A Delaware Statutory Trust?
Putting money into a Delaware Statutory Trust (DST) means investors reap the benefits of a passive investment. While the DST sponsor handles the ins-and-outs of direct property ownership, investors can receive regular income streams, confident in the idea that, once the DST matures and properties are sold, they’ll also likely benefit from asset appreciation.
The History Of Capital Gains Tax
In 2020, investors enjoyed historically low capital gains tax rates. However, capital gains taxes weren't always so accommodative. Since the capital gains tax was instituted, it's been more common to see rates higher than 20%. For the curious, two questions arise — where did the capital gains tax come from, and what does its storied history look like? In this article, we’ll look at how the long-term capital gains rates have changed over time. As a quick refresher, short-term capital gains are on investment assets held for a year or less. Short-term gains are taxed at the ordinary income tax rate. Long-term capital gains are on investment assets held for more than one year.
