Opportunity Zone Business Requirements: What You Need to Know
Opportunity zones (OZs) have brought investors (who have been lucky enough to invest in them) generous tax benefits. A lot has been discussed about investing in qualified opportunity zone funds (QOZFs) and the tax benefits investors get from such investments.
What is a Transfer Tax in Real Estate?
A transfer tax is imposed by state or local governments when property ownership is transferred from one party to another.
Risk and Tax Implications of Investing in a Delaware Statutory Trust (DST)
For those looking to do a 1031 exchange, a Delaware Statutory Trust (DST) can be easier for deferring taxes. This is because DSTs allow investors to 1031 exchange directly into the DST, bypassing the need to look for individual properties on the open market.
What is a Disregarded Entity in a 1031 Exchange?
You have a variety of business entities from which to choose when it comes to initiating and completing a 1031 exchange. According to the IRS, individuals, C corps, S corps, general or limited partnerships, limited liability companies, and trusts – basically, any type of taxpaying entity – can set up to exchange investment properties under 1031 exchange rules.
What Happens if You Sell a Depreciated Rental Property?
You might have decided to invest in real estate for a few reasons. In some cases, rental property can be a hedge against inflation. That property could generate a steady cash flow for you. And, in some cases, that property might increase in value, giving you a potentially decent profit when you sell it.
Are Conservation Easement Payments Taxable?
Conservation easements are used to protect and preserve natural resources and open spaces. They involve a legal agreement between a landowner and a qualified organization, typically a land trust or government entity, which restricts certain uses of the land to ensure its long-term conservation.
What Is an Example of an Opportunity Zone?
Opportunity Zones are designated areas that are considered distressed and would benefit from economic growth and development. Created as part of the Tax Cuts and Jobs Act of 2017, these zones provide tax incentives for some parties who invest their capital gains into qualifying projects and businesses in the designated areas.
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.
