The Extension Of 1031 Exchange Deadlines: Are You Ready?
When the IRS announced various deadline extensions in April 2020, a large bulk of the U.S. population breathed a collective sigh of relief. The extension of quarterly tax payments and filing deadlines from April 15 to mid-July provided wiggle room for taxpayers dealing with COVID-19’s economic fallout.
The 1031 Exchange: Maintaining Wealth Through Passive Management
When individuals are younger, investment goals typically focus on wealth creation. In this situation, investors are able, and willing, to take on higher risk, with anticipation of higher rewards. Investors have a longer life span to experience the ebbs and flows of a capital market, and their risk appetite can prove very rewarding in the long game, albeit volatile in the short.
A Deep Dive into Real Estate Portfolio Diversification
Ask any investment banker or financial planner about the best advice when it comes to building and maintaining a portfolio designed to provide steady returns, and the answer generally boils down to one word: Diversification.
Solving The Real Estate Tax Problem
Individuals acquire and own real estate because it is considered to be a good investment. When handled correctly, ownership of an office building can produce a steady cash flow, and a profitable return when the asset is sold.
Managing Risk and Real Estate
There is a degree of risk when it comes to life, in general. Those who drive risk getting into accidents. Those who step off front-porch stairs risk tripping and falling. The good news here is that people are generally prepared to reduce, or mitigate, such risks. For instance, most will drive defensively, stopping at stop signs, looking before proceeding, and yielding the right of way. A home owner or house visitor will scope out any impediments before descending those porch stairs.
From Active Investing Through Direct Ownership To Passive Investing Through Realized Portfolio™
In an earlier blog/chapter in this e-book, we introduced the concept of Investment Property Wealth Management™ as an alternative to real property ownership. The idea behind the IPWM™ solution is to use commercial real estate as a foundation to generate passive income, an important factor for investors approaching retirement.
The Basis Of Investment Property Wealth Management: A Modern Portfolio Theory Explanation
The goal of the Investment Property Wealth Management™ program is to move direct real estate owners into wealth managers. This is done by placing “hard” assets into professionally-managed portfolios, then offering owners the opportunity to invest in these portfolios. The strategy behind these portfolios is based on a concept known as modern portfolio theory.
Bridging The Gap Between Real Estate Ownership And Wealth Management
Real estate assets are alternative investments that are considered, by many, to potentially offer low-risk/high return cash flow, as well as portfolio diversification. For the average investor, real estate assets are typically found in the former of direct property ownership. The direct ownership style — buying and owning a stake in physical real estate, such as an apartment, office or retail property —is generally considered a stable investment, designed to provide regular cash flow and built-in asset appreciation.
How You Complete a 1031 Exchange in 10 Easy Steps
A 1031 “like-kind” exchange is widely used by real estate investors to create and preserve wealth. In simple terms, Internal Revenue Code §1031 allows real estate investors to defer capital gains taxes on the profits from selling an investment property, provided the sale proceeds are “exchanged” (reinvested) into another “like-kind” property (investment real estate).
Common Misconceptions About Qualified Opportunity Zones (QOZs)
There are a number of common misconceptions about the Qualified Opportunity Zone (QOZ) Program. To help clarify speculation and misunderstandings, we’ve put together five of the most common misconceptions.
