Depreciation and UPREITs: How Investors Can Benefit
One of the most powerful tax advantages investors can employ is depreciation — the process of deducting a portion of a property’s value over the years, even though the asset is actually appreciating.
Common Myths About Delaware Statutory Trust Investments
As Delaware Statutory Trusts (DSTs) become recognized for their tax-deferral benefits and potential for steady and passive cash flow, you may have noticed increasing myths and misconceptions swirling around. There are a few DST myths that have, at best, caused minor confusion among new investors. However, there are others that must be debunked to avoid major issues or inflated expectations.
How Do UPREITs Provide Tax Deferral Benefits to Property Owners?
Many real estate investors understand that with high appreciation comes high taxes, and as such, look for ways to delay tax liability in order to keep more of their equity working for them.
What Happens If a Delaware Statutory Trust Sponsor Goes Bankrupt?
Delaware Statutory Trusts (DSTs) are powerful investment vehicles, offering advantages like passive income and potential tax deferral for capital gains taxes. However, these trust entities are not without risk, and one of the most concerning is sponsor bankruptcy. So, what does actually happen if a Delaware Statutory Trust sponsor goes bankrupt?
Is a Delaware Statutory Trust Right for First-Time Real Estate Investors?
Real estate has always been considered a cornerstone of wealth-building, and entering this sector means building a portfolio of diversified assets. First-timers have plenty of options available to them, and some find themselves drawn to Delaware Statutory Trusts (DSTs), which offer benefits including passive income and enhanced diversification.
How Long Does It Take To Set Up a Delaware Statutory Trust?
Entering a Delaware Statutory Trust (DST) is a powerful investment strategy that provides tax-deferral benefits, enhanced diversification, and truly passive income. Before you commit to this route, however, you may have various questions regarding certain aspects of the DST, such as the establishment timeline. How long does it take to set up a Delaware Statutory Trust? Is there a faster way to go about it? Realized 1031 shares the answers to these questions below to help you out.
When Is the Best Time To Invest in a Delaware Statutory Trust?
Entering a Delaware Statutory Trust (DST) is a long-term commitment. While this investment vehicle offers benefits such as tax deferral and passive income, it’s locked into a holding period that can span up to a decade or more. As such, timing is crucial to increase the chances of maximum return on investment. When is the best time to invest in a Delaware Statutory Trust? Realized 1031 looks at DSTs through a macro lens to answer this question. Keep reading to learn more.
Benefits and Drawbacks of Investing in an UPREIT Structure
An umbrella partnership real estate investment trust (UPREIT) is a powerful investment tool that many modern investors are finding appealing. This structure is an operating partnership (OP) owning income-generating property, with the REIT having the controlling interest and investors as limited partners. As you contribute property to the UPREIT, you gain OP units and earn dividends on a regular basis. Since the REIT controls the operations and management of the underlying properties, investors have hands-off involvement and earn without any added effort.
How to Calculate Capital Gains When Selling Partial Ownership of Property
Selling partial ownership of an investment property can be a strategic move for property owners seeking to diversify their portfolio or unlock some value. However, understanding how to calculate capital gains in such scenarios is crucial for effective financial planning and to avoid surprises at tax time. Here’s a concise guide geared toward property owners on how to navigate the calculation.
