How Do REITs Make Money?
In previous blogs, we've touched on the idea of passive income for investors. One way to pursue passive income is the Real Estate Investment Trust or REIT. Unlike other investments that strive to provide passive income, such as the Delaware Statutory Trust, REITs are positioned as securities. In other words, investors put their capital (via sponsors/management firms) into real estate companies, potentially receiving income in return.
What is a Zero Coupon Delaware Statutory Trust?
Potential tax benefits are one reason you might invest in a Delaware Statutory Trust as a 1031 exchange replacement property. Other reasons might include portfolio diversification, access to quality real estate assets, and potential cash flow.
What are the Opportunity Zone Benefits for Developers?
Developers can reap multiple rewards from Opportunity Zones. The advantages come in three forms: significant tax savings, effective capital raising, and strategic marketing leases. The primary allure is the substantial tax savings; when a developer has capital gains, they can invest directly into a Qualified Opportunity (QO) Fund in a relevant project. By doing so, they can tap into the full range of tax benefits that Opportunity Zones offer, maximizing their investment.
721 UPREIT Exchange: The 6 Things You Need to Know
The 721 umbrella partnership real estate investment trust (UPREIT) exchange is a great alternative for real estate investors who want to defer capital gains taxes without having to follow a strict time frame like the 1031 exchange. The investor may also be attracted to all the other benefits that a 721 UPREIT exchange offers that the 1031 exchange might not be able to fulfill.
Can Passive Rental Losses Offset Other Passive Income?
The three generally acknowledged income categories are active, passive, and portfolio income. While active income (also called ordinary or earned income) results from active participation in an endeavor, such as wages from a job, passive income is derived from activities requiring minimal taxpayer effort. Passive sources of income may come from rental properties (but not always), partnerships in a business, and royalties. Portfolio income includes dividends, interest, and capital gains.
Alternative Trading Systems: An Overview for Investors
Alternative Trading Systems (ATS) offer a different avenue for trading securities than traditional exchanges, serving as regulated platforms that connect potential buyers and sellers. While they function similarly to national securities exchanges in matching orders, they are not classified as such. Unlike national securities exchanges, they provide a less formal, more flexible market structure. Although under the regulation of the SEC, an ATS maintains its unique identity by operating under its own set of rules, creating a niche marketplace for certain types of securities. It is noteworthy, however, that an ATS can apply to the SEC to upgrade its status to a national securities exchange if it wishes to adhere to more formal structures.
Can You Do a 1031 Exchange on an Aircraft?
A 1031 exchange is a remarkably helpful tool for investors to manage their capital gains taxes. When you want to sell an investment property and reinvest the proceeds, using a 1031 exchange enables you to reinvest the entire proceeds while deferring payment of capital gains taxes. This simple tactic provides excellent leverage for investors.
How to Get a Medical Power of Attorney
A medical power of attorney (MPOA) is one of several types of power of attorney (POA) designation. Each POA is unique, but in each case, assigning a POA to someone gives them the authority to act on your behalf. Some POA designations are comprehensive and durable, while others are strictly limited. Many people use this tool for financial purposes, but the medical POA allows the designated individual to make medical decisions on your behalf. The authority might be immediate or take effect in the future, typically when the conferring person can’t act on their own.
Can You Turn a 1031 Exchange Property into a Short-Term Vacation Rental?
Have dreams of starting a short-term rental business? You aren’t alone.
Can One Joint Tenant Sell Property?
Joint Tenancy is among the standard methods for two or more individuals to share property ownership. Married couples and investment groups often employ a joint tenancy arrangement. In this structure, each owner holds an equal share, and all are equally responsible for obligations. A further attribute of joint tenancy is the right of survivorship, which means that if one tenant dies, their share passes equally to the other tenants rather than to a designated heir. While each joint tenant owner has an equal share, each has an undivided interest, meaning that they have full use of the shared property.
