What are Strategies for Business Exit Planning When the Business Owns Real Estate?
Growing a business typically takes a ton of time, energy, and equity. Regardless of where your clients are in the growth cycle of their enterprises, it’s important they have well-defined exit strategies in place. These strategies can be used as a roadmap to help guide them through crucial business decisions, as well as provide an end-goal target for all of their efforts.
Can Individuals Invest in Opportunity Zones?
The passage of the Tax Cuts and Jobs Act in 2017 created the Qualified Opportunity Zone program. The program was designed to encourage investment in economically disadvantaged communities. When the legislation passed, each state and territorial governor had the opportunity to nominate specific census tracts as QOZ-eligible. The Treasury Department completed the final evaluation and determination; currently, over 8700 areas are eligible. The selection process considered median income and the pervasiveness of poverty.
What Can You Buy With a 1031 Exchange?
A 1031 exchange is an investment and tax tactic that gets its name from Section 1031 of the Internal Revenue Code. The execution of a 1031 exchange may allow a taxpayer to defer recognition of capital gains taxes when they sell an investment property and reinvest the proceeds into another asset. The rules are strict in some ways, such as the timeline, but generous in others, such as regarding what properties the taxpayer can exchange.
What is an Example of Risk Management?
The Oxford Language Dictionary defines risk management as “the forecasting and evaluation of financial risks together with the identification of procedures to avoid or minimize their impact." That makes sense; investors routinely incorporate risk management into their decision-making process. Part of the task involves determining how much risk is acceptable (risk tolerance) since some people are willing to risk more in pursuit of a greater potential reward.
Helping Clients Use Investment Property for Retirement, Income Diversification
David Wieland, CEO and co-founder of Realized, recently provided Family Wealth Report with his perspective on diversification strategies, with a focus on baby boomers with significant real estate holdings. Read the complete article using the link above or review this recap.
Do Opportunity Zones Defer State Taxes?
The Tax Cuts and Jobs Act (TCJA) allowed some taxpayers to defer and even eliminate the obligation to pay capital gains tax in some circumstances. Here’s how it works:
Who Can Witness a General Power of Attorney?
The laws governing the granting and revocation of power of attorney vary by state. Therefore, each state can create different rules for each subtype of power of attorney (POA). However, there are several common types of POA:
What is the Role of a Sponsor in a Delaware Statutory Trust?
The Sponsor plays a significant role in creating and managing a Delaware Statutory Trust (DST). In fact, the Sponsor is often the visionary, identifying the target property, acquiring it, arranging for financing, and then managing its operation. A Sponsor might be an individual, private equity firm, or other real estate investment company.
What are Private Real Estate Funds?
Investors can choose among various options to own real estate. One common choice is direct investment, which involves buying and managing property. Some investors prefer this approach as a means to pursue both income and potential appreciation. However, direct investing does have limits, particularly resource limits. One option for investors who prefer to pursue larger properties is to participate in a private real estate fund. Private real estate funds raise capital from investors, identify, acquire, finance, manage investments, and share income.
What is a Certified Exit Planning Advisor (CEPA)?
A Certified Exit Planning Advisor (CEPA) specializes in helping business owners develop and execute a plan to exit their business. The CEPA designation is awarded by the Exit Planning Institute after completing a rigorous training program and passing an exam.
