Can Passive Losses Offset Capital Gains?
Passive income is a special type of income that not everyone will be involved in. It is also different from wage income. Passive income is generated from a partnership, a business the investor is not involved in, rentals, or other flow-through entities.
How to Get an Emergency Power of Attorney
Major life changes often affect someone’s ability to properly manage their personal and financial affairs. A debilitating stroke, motor vehicle accident, or even incarceration can leave a loved one, relative, or close friend unable to take care of important matters or make sound decisions that affect their lives.
What are Allowable 1031 Exchange Expenses?
Closing costs on commercial real estate can be extremely high, sometimes averaging between 3 and 5 percent of the total value of the asset you are buying. If your target property costs $2 million, that 3 percent could exceed $60,000 in fees and related expenses.
Does a Delaware Statutory Trust Require an Owner Trustee?
Delaware Statutory Trusts (DSTs) are passive investment vehicles that provide investors with fractional ownership of commercial real estate. Often, the investor (also referred to as an owner or beneficiary) can gain access to properties they could not afford to buy on their own. DSTs are increasingly popular as investment options for accredited investors. Some of the attractions of the model include:
Can a General Power of Attorney Be Revoked?
Establishing power of attorney with a trusted relative, business associate, or financial professional can be helpful if a situation arises where you aren’t able to care for yourself, such as the onset of a serious illness or following a serious car accident.
What Is A Master Lease In A Delaware Statutory Trust (DST)?
A master lease in a Delaware Statutory Trust (DST) is a lease agreement between the DST and a master tenant. The master tenant is responsible for managing and operating the property, and the master tenant also sublets the property to individual tenants. This arrangement allows the Delaware Statutory Trust to avoid the hassles of having to directly manage properties held under trust.
Why is a Cap Rate Important?
Cap rates are one of the go-to tools real estate investors use when valuing a property. Cap rates provide a quick and easy way to determine a property's value. But cap rates shouldn't be used in isolation. Understanding how to derive a cap rate and knowing the right context are critical factors in getting the most out of a cap rate.
Which States Recognize Tenancy By Entirety?
Tenancy by Entirety (also called Tenancy by the Entirety) is a form of joint property ownership that’s only recognized in a handful of states.
Does a Delaware Statutory Trust Require Accredited Investor Status?
DST (Delaware Statutory Trust) investments raised a record $9.2 billion in 2022, but 2023 has seen a decline in the volume of DST offerings due at least in part to rising interest rates. Nonetheless, these investments offer some advantages worth considering. One aspect of DST investing that has enhanced its popularity is the ability of investors to use a DST investment as part of a 1031 exchange, which allows the taxpayer to defer capital gains taxes due on the sale of investment property.
What is the Tax Rate for Depreciation Recapture?
While depreciation is a great deduction for real estate investors, it isn’t free. Eventually, the IRS will have to be paid back, which happens when the property is sold. That’s where depreciation recapture comes in. Investors should be aware that depreciation recapture is always lurking and waiting for the sale date. By being aware of this tax and the rate used, investors won’t be surprised when this expense shows up in the sale.
