Innovations in Delaware Statutory Trusts
With a number of recent innovations, Delaware Statutory Trusts (DSTs) are offering a lot more opportunities for investors. There are now more property types to choose from, along with a couple of new ways to structure your DST. Flexible financing is always a great option to have in your investment toolbox, so be prepared to make some room for DSTs. Towards the end of this article, you’ll learn about special financing that only comes with DSTs. Let’s dive in and evaluate three areas where DSTs can directly benefit investors.
Capital Gains Tax Rate Treatment On The Way In And Out
Here at Realized, we can help you complete a 1031 exchange to defer your capital gains tax bill and create a tax-efficient investment portfolio. One risk that you face when you defer your capital gains tax bill is that the capital gains tax rate may be different than it is now when it does come time to pay the bill.
Do I Qualify For A 1031 Exchange?
When you go to sell an investment property, you may be required to pay taxes on any capital gains from the transaction. Taxes are a drag on any investment; they reduce returns, and the amount of money you can apply to new investments. However, real estate investors have a tool at their disposal for deferring capital gains taxes — it’s called a 1031 Exchange.
What Is The Role Of A Title Company In A 1031 Exchange?
Every real estate transaction involves several interested parties: a buyer, seller, broker, mortgage lender, a Qualified Intermediary (in the case of a 1031 exchange), and a title company. Most people who have participated in a real estate deal are familiar with the roles of each of these parties, but they may not be as familiar with that of the title company.
What Are The Disadvantages Of An UPREIT?
The two most captivating words in the real estate world may well be: tax deferral. This phrase captivates audiences and generates high interest, especially among commercial property investors. When property has enjoyed a significant jump in value and has reached its prime, owners typically seek ways to dispose of it — without paying hefty capital gains tax. Or perhaps they are too heavily invested in real estate and want to diversify.
What Is Depreciation, And Why Is It Important?
Real estate investment is widely considered as an attractive asset class to investors around the United States for a number of reasons. Whether you own an office building in the central business district of Chicago, an apartment building in Charlotte, or a retail strip center in Orlando, real estate can offer attractive risk-adjusted returns. Given conscientious market selection and fluid operation, real estate has the potential to appreciate over time — allowing you to build equity as you reduce debt on the property or portfolio.
Venture Capital And Opportunity Zones: Seeking Returns In A Low Return World
In a world of low returns, institutional investors are turning to the private market. An influx of capital into private markets have pushed total investments to all-time highs. However, investors have to hold investments longer for those returns. Private market investments such as Opportunity Zone Funds (OZFs) have a few tools at their disposal that may be able to boost returns, including the reduction or elimination of taxes on gains. These investments are gaining traction, and Venture Capital (VC) firms are taking notice. Let’s discuss how these investments are structured, and the two VC OZF funds available.
What Is FIRPTA?
When an individual sells property in the United States, they must pay taxes on that earned income. This tax applies to foreign investors who sell property in the U.S. as well. In fear that foreign investors won’t file tax returns, the IRS requires that a withholding tax be held — which can be thought of as an ‘advance tax payment.’ This requirement is enacted through FIRPTA, which stands for the Foreign Investment in Real Property Tax Act.
What Should I Know About Investing In Real Estate?
Investing in real estate is no easy feat. Despite the many glamorized television shows touting the seemingly “simple” process of buying and selling real estate properties for a quick buck, there is far more that happens when it comes to investing in real estate than these shows portray. For one thing, investing in real estate takes a tremendous amount of research and due diligence, especially for investors who are considering buying a property that they are not entirely familiar with.
Realized Launches Marketplace, Revolutionizing Opportunity Zone Investing
Today, we announced the unveiling of our Qualified Opportunity Zone marketplace. The marketplace is a new platform that allows investors to compare Qualified Opportunity Zone (QOZ) investments and provide greater access to a robust selection of QOZ investment funds. The launch represents our latest move to better integrate modern portfolio theory into the real estate investing industry, helping investors to maximize after-tax risk-adjusted returns via tax-optimized and diversified commercial real estate portfolios.
