Coronavirus And Retail: Boom Or Gloom?
Just as the Covid-19 virus hits some people hard and seems to give others a pass, some retailers have been bruised by the economic repercussions of the extraordinary financial and social challenges of 2020, while some have been unscathed. Target, Lowe’s, and Walmart have even benefitted from the crisis, while chains like TJ Maxx and Kohl's have suffered steep declines in sales.
Can Tax Losses Offset Capital Gains?
Not every investment will be as successful as hoped for, but there are strategies that investors can use to turn these losses into tax benefits. Losses on investment can be used to offset capital gains and reduce your taxes. Even if you don’t have gains for that year, losses can still be used to offset future gains or income. A strategy that many investors use to offset capital gains now or in the future is called tax loss harvesting.
What Is The 1031 Exchange Form 8824, And How Do I Fill It Out?
IRS Form 8824 is used to report a 1031 exchange for the tax year in which you complete it. Execution of the form calculates the amount of gain deferred due to a like-kind exchange of property. The IRS considers the deal completed in the tax year that you sell the initial relinquished property, and the exchange period begins. If the replacement process is not fully consummated until the following tax year, then the Form 8824 will not be final until that process is complete, which may require leeway in tax reporting deadlines. If you do not finalize the replacement purchase or purchases until the next tax year, you will need to request an extension for tax filing due to that circumstance.
Understanding The Qualified Opportunity Zone Deadline Extension
If you’ve learned anything at all about the Qualified Opportunity Zone (QOZ) program from previous blogs, it’s that the initiative contains many deadlines. These requirements must be met, to ensure tax deferrals on capital gains from the sale of assets. One such deadline is the 180-day requirement for reinvestment of your capital gains into a Qualified Opportunity Fund (QOF), to postpone taxes. The fund then takes that gain, and gains from other investors, and puts them toward Qualified Opportunity Zone Properties (QOZPs).
1031 Exchange Property Types: What Are Considered Like-Kind Properties?
When a real estate investor sells a property, they might be eligible for a deferment of capital gains taxes through a 1031 Exchange if they purchase a replacement property called a like-kind property.
Can I Use A 401K For Real Estate Investment?
If you’re self-employed or a small business owner with a solo 401(k) or Roth 401(k) or if you’ve retired or changed jobs and have assets in an employer-sponsored 401(k), real estate investment is an attractive option for long-term growth potential.
From V To Swoosh: CRE’s Projected Recovery
Since the Covid-19 pandemic nearly decimated the U.S. economy in March, economists have been offering varied predictions about the recovery. There was initial hope for a quick V-shaped return, but that proved overly optimistic. Some experts have forecast a Nike swoosh shaped recuperation, with the caveat that the healing for real estate will lag jobs by at least several months. Early confidence has fallen victim to the continued spread of the virus, which continues to elude containment in much of the United States while also showing renewed strength in other countries. Congress's inability to agree on a second round of stimulus support before the November election adds to the markets' uncertainty. The result is a lack of consensus on both the shape and timing of the economic, job, and real estate recovery.
Can You Buy Out An LLC Or Partnership In A 1031 Exchange?
Partnerships can be an efficient way for multiple investors to purchase commercial real estate. Combining capital often helps investors buy commercial assets that would be beyond their reach as individual investors.
What Is A Triple Net Lease Agreement?
Commercial leases take various forms, and the type you choose, either as a tenant or an investor, may impact your financial results. A gross lease means that the landlord (owner) covers all the property's operating expenses with the tenants paying rent for their respective space, perhaps with a load factor for common areas. Sometimes the utility costs are included in the rent, and at other times they are charged separately by the tenant. In a modified gross lease, the tenants pay rent plus a portion of the building’s annual operating expenses, subject to individual negotiations.
What Is A Private Placement Memorandum, When Do I Need It, And How Much Does It Cost?
When investing in most private funds, you will receive a document called a private placement memorandum or PPM (also called an offering memorandum or offering document). This is a critical document to look over and should be made available to you with other closing documents. It is similar to a prospectus for mutual funds. The PPM discloses information about the investment and is meant to provide enough data for investors to make an informed investment decision. After reviewing the PPM, you should be able to decide if the investment is a good fit.
