Asset allocation is an important aspect of portfolio diversification, as well as a means to help investors manage their exposure to risk.
In the simplest terms, a 1031 Exchange allows a taxpayer to defer the recognition of capital gains tax due from the sale of investment property by replacing the sold property with a "like-kind" property of the same or greater value. Section 1031 of the Internal Revenue Code originally applied to personal property as well as real estate, but was amended by the Tax Cuts and Jobs Act to remove exchanges of intangible and personal property. To successfully defer the capital gain, the taxpayer must use the profit from the sale to purchase a like-kind property within 180 days.
If you’re considering investing in a Delaware Statutory Trust (DST), there are some things you need to consider before making the leap. Evaluation of a DST is a unique process because of the DST’s legal and financial structure as a pre-packaged investment. The Sponsor defines the terms of a DST in a Private Placement Memorandum (PPM), which outlines the rights of the involved parties, including the investors, Sponsor, and lender. The PPM also designates each party’s compensation.
Beneficiaries are individuals or entities designated to receive distributions from assets (or the assets themselves) when an owner or settlor dies. Retirement accounts, trusts, life insurance policies, and annuities commonly have beneficiaries.
If you’ve had a chance to read our previous blogs on the topic, you already know about beneficiaries. A beneficiary is an individual or an entity eligible to receive distributions from a trust, will, or life insurance policy. We’ve discussed the importance of naming beneficiaries to ensure that your wealth and/or assets go to the designated people or organizations you choose.
Retirement generally means stepping away from a day-to-day job you might have had for years, or even decades. It also means stepping away from a steady wage and/or salary.
A modified gross lease is a variety of commercial real estate lease. In this structure, the tenant pays base rent and a proportional share of some other property costs, including taxes, utilities, insurance, and maintenance. A modified gross lease sits between a gross lease, where the landlord pays for all operating expenses, and a net lease, which passes on property expenses to the tenant.
If you’re like many in the workforce (as either an employee or a business owner), the chances are pretty good you’ve set up some kind of defined contribution plan for your retirement years. During each pay period, you’ve contributed a certain amount from your earnings to that plan, and maybe you’re taking comfort in seeing that balance grow.
Interest rate risk is the risk that an investment’s value will change as interest rates change. This is of heightened concern during periods of interest rate hikes but is also vital to watch when the Fed is lowering rates.
Owning and maintaining a rental property can be expensive — not to mention considerable work. Luckily, some of the expenses are deductible and claiming depreciation helps defray the cost of property ownership. Depreciation is a deduction that allows the investor to recoup the cost of assets (in this case, the rental property) used as a source of income.