How Does Inflation Affect Retirement Planning?
Inflation has a great impact on retirement planning because it is potentially lowering the value of each dollar you save over time. It is definitely something to consider when mapping out a plan for your financial future.
What Is the 20% Related Party Rule for Opportunity Zone Owners?
The 2017 Tax Cuts and Jobs Act is known for creating the Qualified Opportunity Zone (QOZ) program, which encourages real estate investors to invest in low-income communities with the intention to stimulate economic development and job growth. Under certain conditions, these private investments may be eligible for capital gains tax incentives. By investing realized gains in QOZs, investors can reduce capital gains tax liability or eliminate it altogether from future value appreciation on QOZ investments.
What Does a Landlord Pay in an Absolute Net Lease?
If you’ve been paying attention to recent Realized Holdings blogs, you’ve likely stumbled onto various commercial lease topics. Understanding the tenant/property owner lease arrangement is important before investing in a property. Also important is understanding which party is responsible for what costs, such as maintenance, taxes, and insurance.
How to Measure Diversification in a Portfolio
For anyone who has done some reading on investment risk management, you’ve very likely come across portfolio diversification. The goal of portfolio diversification is to create a portfolio of investments that have low volatility. That means the value of the portfolio should not fluctuate as much as a similar non-diversified portfolio.
Why Were UPREITs Created?
Real Estate Investment Trusts (REITs) were introduced in 1960 to allow smaller investors access to income-producing real estate investments that were previously only attainable for the wealthy or large investors.
How Much Mortgage Interest Is Tax Deductible?
One benefit of home ownership is the ability to deduct your mortgage interest on your taxes.
What Are the Holding Requirements for Opportunity Zone Investments?
As part of the 2017 Tax Cuts and Jobs Act (TCJA), an Opportunity Zone is a designation and an investment program that allows for certain investments in lower-income areas to have tax advantages. There are over 8,700 designated Qualified Opportunity Zones (QOZ) in all 50 states, the District of Columbia, and five U.S. territories. The goal of the program was to create jobs and stimulate economic development by incentivizing investors to reinvest capital gains in real estate property or businesses located in economically-distressed communities.
What is a Real Estate Syndication?
When several investors partner together to buy a real estate investment, it is called real estate syndication. With the prevalence of the internet, some people also think of it as crowdfunding for real estate.
What is a 403B Tax Shelter Annuity and How Does it Work?
Many investment vehicles are available for employee retirement. Individual Retirement Accounts (IRAs) and 401(k)s could be considered among the most visible in this category. Also in this category is the 403(b), also known as a tax-sheltered annuity, or simply a TSA. As its description implies, this particular investment is a form of a tax shelter that has, in the past, been compared to other retirement investments. There are, however, various differences between the TSA and IRA.
Tenant-in-Common Rights and Liabilities
Tenant-in-common (TIC) ownership structures are still broadly used as a real estate investment structure. An important component of TICs is that every co-owner needs to get along so that decisions can be made in a timely manner. This generally works best with a small group of people who know each other and have an understanding of the use of the property and what any goals for the property might be.
