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.
Is There a Lifetime Limit on Capital Gains?
Capital gains are increases in the value of an asset relative to its basis. The capital gains tax is an assessment on that gain that applies when the asset is sold. So while an investor may watch and enjoy the appreciation in a capital asset, the tax doesn’t apply until they “realize” the gain—which occurs when they dispose of the investment.
Does a Step-Up in Basis Eliminate Depreciation Recapture?
Inheriting real estate can be a significant financial windfall for beneficiaries. Depending on how it’s received, though, inherited real property can come with some important financial considerations.
Are Capital Gains and Income Tax the Same?
You can save a lot of time and effort at tax time by understanding the different types of income you’ll have to report on your Form 1040.
How Can Debt Impact Your Qualified Opportunity Zone (QOZ) Investment?
Like traditional real estate investment vehicles, Qualified Opportunity Zone Funds (QOZF) may strategically use financing to help maximize returns. Using debt or leverage has its pros and cons; it has the first priority of payment, it magnifies returns in both directions, and it also provides income tax shelter. All else equal, more debt offers a higher risk/return ratio for investors.
