How to Revoke a Medical Power of Attorney
Power of Attorney (POA) is a legal term that means you are allowing someone else to act on your behalf. A person can employ several types of POAs, including a medical power of attorney, sometimes also called a healthcare proxy. With a medical power of attorney, the person making the designation (principal) names someone else (agent) to act on their behalf if the principal can no longer do so due to physical or mental incapacity.
Can Two Trusts Be Joint Tenants?
Joint tenancy is a standard structure for two or more parties to own property together. With a joint tenancy, each tenant has the same rights and responsibilities as the other owners and has an equal stake in the assets. In addition, with a joint tenancy, each co-owner has the right of survivorship. That means if one joint tenant dies, their share does not go to a designated heir. Instead, it is distributed equally to the remaining owners.
What is the Important 1031 Exchange Terminology to Know?
As we’ve mentioned in previous blogs, the 1031 exchange is a method to potentially defer capital gains taxes on the sale of real estate used for trade or investment. Through the process, you “swap” the real estate you currently own into other real estate of equal or greater value.
1031 Exchange 45-Day Rule Extension: How it Works and What to Consider
A 1031 Exchange has many rules, and getting any of them wrong can mean cancellation of the exchange. If that happens, the investor will get their money back, but it will come with a hefty tax bill since gains on the relinquished property are now taxable.
What is an Interest Rate Cap and How Does it Work?
For investors, interest rates can make a significant difference in whether a specific project is attractive or not. As interest rates rise, the margin for profit may shrink, requiring the investor to approach with caution. In some cases, a variable or adjustable interest rate can offer a tool to increase the deal’s feasibility. The reason for this boost is that the initial rate is lower than the investor can obtain for a long-term fixed-rate loan.
Buying a Rental Property in an Opportunity Zone: What You Need to Consider
The Opportunity Zone program can provide certain investment advantages. When conducted properly, buying a rental property in an opportunity zone can generate tax benefits, while assisting with economic revitalization. But if you’re interested in this particular action, here are five things to ask yourself.
What is a Real Estate Investment Fund?
Real estate investment funds are a means for investors to pursue the benefits of investing in real estate without directly owning investment property assets. These funds mingle the capital contributed by the investor group and use the money to obtain, manage, and sometimes improve commercial property. A private equity real estate fund is an illiquid investment and typically has a holding period of ten or more years. However, some investment funds do not have a planned termination point.
Are Distributions from a Qualified Opportunity Fund (QOF) Taxable?
A Qualified Opportunity Fund (QOF) is an investment instrument for properties located in designated Qualified Opportunity Zones (QOZs) approved by the IRS. QOZs are areas identified as distressed areas that would benefit from revitalization.
What is the Most Common 1031 Exchange?
A 1031 exchange is a tool that investors can use to defer the payment of capital gains taxes if they sell a real estate asset and reinvest the proceeds. Although long-term capital gains tax rates are significantly lower than the rates levied on ordinary income and short-term gains, the tax can reduce profits by up to 20 percent.
Are Capital Gains Considered Income for Mortgage?
When applying for a mortgage, lenders want to be sure that borrowers can handle monthly payments and still have enough money left to pay bills and live on. Given how regulated the mortgage industry is, the income process requires a lot of analysis.
