Want To Unload That Investment Property? What Advisors Recommend
In a recent article featured on Barrons.com, Rob Johnson, Head of Wealth Management at Realized, weighed in on selling investment properties prior to retirement. While many boomers gearing up for retirement may be rethinking their strategy around real estate investments, Johnson says there are multiple things to consider before you sell.
[Podcast Recap] Opportunity Zone Strategies for High Net Worth Investors
Realized recently joined the Opportunity Zones podcast for a panel on Opportunity Zone (OZ) investment strategies. The panel discussed a variety of ways that investors can seek to maximize the tax efficiency of their investments. They also compared Opportunity Zones and Delaware Statutory Trusts (DSTs) in terms of benefits and challenges for investors. Here are some of the key takeaways from this panel.
Do Oil Royalties Qualify for Capital Gains Treatment?
Owning rights to oil means you may receive royalties from sales of the oil obtained from a reserve. While you won’t have to pay capital gains on royalties you receive from your mineral rights, you may have to pay them if you sell your rights for a profit.
How Much is the Down Payment for an Investment Property?
Putting money toward an investment property can be a worthwhile venture. Owning an investment property has the potential to net you proceeds far into the future and serve as a way to pass on your wealth to your loved ones. However, building your portfolio and obtaining high-value investment properties may require a substantial down payment.
What is a Mortgage Boot in a 1031 Exchange?
You may use a 1031 Exchange investment strategy to defer capital gains and retain your wealth when selling investment properties. 1031 or like-kind exchanges allow you to use the gains from the sale of your property or asset to reinvest in another similar property and defer capital gains tax liability.
Can You Move an Annuity to Another Company?
Annuities are long-term insurance contracts that offer ongoing payments and may offer tax-deferred growth. People who buy annuities may be concerned about the potential for “outliving their assets” and running out of money. An annuity may offer lifetime payments.
What is a Built-to-Suit 1031 Exchange?
A 1031 exchange is a tax management tool that allows investors to defer the realization of capital gains taxes when they sell an investment property. The relevant section of the Internal Revenue Code is 1031, which is how the name originated. The IRS oversees these exchanges and stipulates tight deadlines for completion, along with other qualifying characteristics. There are some variations on the original exchange concept, which may broaden the utility for some investors. For example, you can engineer a reverse 1031 exchange if you identify the replacement property before you sell the property you intend to dispose of.
What is a Conservation Easement and How Do They Work?
Anyone up to speed on the latest season of the hit show Yellowstone knows that Yellowstone Dutton Ranch owner John Dutton (Kevin Costner) proposes placing his massive cattle ranch in a conservation easement to thwart efforts to develop land occupied by his ranch.
What is Risk Mitigation?
Risk is an inherent aspect of investing – there’s no way to separate the uncertainty of making investment decisions from their potential to go astray and negatively affect your investment capital. Risk mitigation is about creating strategies that can potentially reduce your exposure to risk.
Pros and Cons of Owning a Second Home During Retirement
This article was written by Tamara Holmes and features advice from Realized Head of Wealth Management Rob Johnson. It originally appeared on AARP.org. You can find the full article here.
