What is a Qualified Escrow Account?
A qualified escrow account offers a secure and reliable way to hold and manage funds for a specific purpose while also providing protection for all parties involved. Investors often use this type of escrow account in a 1031 exchange to hold the funds from the proceeds of a sale until the purchase of a replacement property is complete.
Evaluating Non-Listed and Publicly Listed REITs: Assessing Volatility
Stocks can get very volatile, which can impact investors emotionally. This is understandable, as volatility can be difficult to deal with, even temporarily. However, we can never really know when volatility may end.
Is Installment Sale Income Subject to Net Investment Income Tax?
Higher earners, who meet certain thresholds, may be subject to the net investment income tax (NIIT). Those who have to pay the NIIT are slapped with a 3.8% tax on their net investment income or on the amount of modified adjusted gross income (MAGI) that exceeds the statutory threshold amount for your filing status. Basically, whichever of the two (investment income or MAGI) is the least amount will be subject to NIIT.
What Happens If You Sell a 1031 Exchange Property At a Loss?
If you’ve been reading our blogs on a regular basis, you know that we publish a great deal of information about 1031 exchanges and potential tax benefits. Specifically, a well-executed like-kind exchange can defer capital gain taxes and depreciation recapture to a future date.
What Types of Property Can Be Held In a Delaware Statutory Trust?
Delaware Statutory Trusts (DSTs) are investment opportunities in which a group of investors each owns an undivided fractional share of the trust’s properties, which may include any commercial assets. DSTs may own various properties, including retail, multifamily housing, office and industrial, and specialty assets like self-storage and student housing. DSTs are possible due to the statutory trust laws in Delaware, which allow trusts to determine the rights and responsibilities of the trust participants and to protect the trust's assets from debtors of any of the beneficiaries (shareholders).
How to Evaluate an Industrial Investment Property
There’s no secret formula when it comes to evaluating potential commercial real estate investment properties.
Evaluating Non-Traded and Publicly Traded REITs: Overview and Liquidity
Real Estate Investment Trusts (REITs) are securities that may provide a simpler route to real estate investing exposure than that of direct real estate. This article will discuss the difference between non-listed and publicly listed REITs. Both provide similar offerings but with differences in liquidity and costs.
Can You Change Ownership in a 1031 Exchange?
Real estate investors who wish to defer capital gains taxes from the sale of investment properties by completing a 1031 exchange have a lot of rules and regulations to follow throughout the exchange process.
Can a Revocable Trust Be a Joint Tenant?
Many people choose to title shared property as a joint tenancy because the ownership structure allows for the automatic transfer of ownership shares upon death of one owner to the surviving tenants.
When is Pro Forma Performed by a Real Estate Investor?
Pro Forma is a term that pops up in real estate investing and other business discussions. Regarding real estate, a Pro Forma is typically thought of as a forward-looking estimate of financial opportunity. As a result, many real estate investors review the Pro Forma documentation to analyze the value of a potential acquisition.
