Realized Blog

Are Charitable Donations Tax Deductible?

The short answer is yes; charitable donations to qualified organizations can be tax deductible. However, there are some stipulations and reporting requirements. 

Posted by Amr Tenney on Dec 30, 2021

Topic: Tax

Can a Distillery Be an Opportunity Zone Business?

Opportunity Zones, commonly referred to as Qualified Opportunity Zones or QOZs, were created by the 2017 Tax Cuts and Jobs Act. Formally known as the Investment in Opportunity Act, the relevant portion of the legislation was included in the TCJA to encourage investment of capital gains into specifically designated, economically challenged areas that could benefit from the infusion of funds. In return for directing their assets into the identified areas, taxpayers could receive tax deferrals and even breaks on their earned gains.

Posted by Clay Schmidt on Dec 29, 2021

What Is a Residential REIT?

Real estate investors are often looking for ways to further diversify their portfolios. In the same way that investors who focus on publicly traded stocks don’t solely focus on one type of asset class, real estate investors often like to hold investments in varying types of real estate.

Posted by Colton Hoisager on Dec 29, 2021

What Types of Risk Cannot Be Reduced by Portfolio Diversification?

Portfolio diversification is a basic tenant of any good risk management strategy. However, there are some risks that portfolio diversification can not improve on. It’s important to be aware of the limitations of portfolio diversification and the risks that a portfolio will face no matter how well diversified it is. This article will dig into the types of risk that can’t be reduced by portfolio diversification.

Posted by Jacob Adams on Dec 28, 2021

Topic: Risk

Is Property Transfer Tax Deductible?

A property transfer tax is a tax on the transfer of property. The transfer transaction is similar to a buy/sell transaction in that property changes ownership. There is still a closing, potentially a real estate agent, fees, and the title. But unlike a buy/sell transaction, there are no funds involved to purchase the property.

Posted by Brett Kimbro on Dec 28, 2021

Topic: Tax

What Kind of Improvements Can Render a Property Ineligible for a 1031 Exchange?

In a 1031 exchange, capital gains taxes can sometimes be deferred when selling one investment property and using the funds from the sale to purchase a like-kind replacement property.

Posted by David Funes on Dec 27, 2021

Topic: 1031 Exchange

What are Qualified REIT Dividends?

A Real Estate Investment Trust (REIT) is a company that generally invests in real estate. These companies do not pay tax on their income, provided they distribute at least 90% of their profit to their shareholders as dividends. Depending on the type of REIT, this income is generated by rent payments, proceeds of the sale, and loan repayments.

Posted by Robert Cobean on Dec 27, 2021

Why Consider a Delaware Statutory Trust?

Real estate investors may be looking for ways to keep more money in their pockets at the end of the tax year. Obviously, there are some cases where taxes cannot be avoided, but there can be a legal way to write off some of your earnings or defer some of the taxes you owe until a later date. Obviously, it’s vital that any tax breaks you find are applied within the framework of the law, as failure to comply with state and federal tax laws can result in hefty fines and more serious penalties. However, knowing how to use tools, such as a Delaware Statutory Trust, can help you legally keep your money in your pocket.

Posted by Amr Tenney on Dec 26, 2021

Is Home Equity Loan Interest Tax Deductible for a Rental Property?

Mortgage financing is a common way for real estate investors to acquire investment properties. Borrowers who derive rental income from investment properties have many important tax breaks available to them.

Posted by Clay Schmidt on Dec 26, 2021

Topic: Tax

What is a Qualified Purchaser?

A qualified purchaser is defined by the Securities and Exchange Commission (SEC) as an individual or family business with over $5 million in investments, not including a primary residence. A family business would not qualify if its sole function is to invest in a fund. 

Posted by Colton Hoisager on Dec 25, 2021

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