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Archive for Tax-Advantaged Investing

Preparations should be underway for the tax changes coming in 2011

As we enter the second half of 2010, many investors are concerned with the expiration of the 2000 tax rate reductions. As of January 1, 2011 we should expect a return of higher marginal rates to those of a decade earlier. Proper planning and adjustments in investment strategies can help to lessen the impact of these changes. While we can all hope for an act of congress, prudent planning should be the course of action through the end of the year.

A recent article in C-Suite Quarterly by advisors Alan S. Hopkins addresses how “tax wise” asset allocation strategies can help. Real estate can play an important role in creating these strategies.

Read the full article: Click Here

Learn more about investment options: Contact Us

Date: July 30th, 2010, By Eric Scaff, File Under: Tax-Advantaged Investing

Reits, tempting investors back to the market

This line is the most interesting sentence in the entire article. “Surprisingly, some wealthy investors are coming to the conclusion that Reits might offer them the best way to take advantage of the recovery in the property market.”. A pretty positive take on REIT’s, but one must take a very careful look at a REIT’s property holdings. Even though banks are working out loans with the “pretend and extend” strategy, values for these properties may never recover to book value. Investors can evaluate REIT’s effectively if they know a little about real estate.

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For More Information on REITS: Contact Us

Date: June 14th, 2010, By Rocco Cortese, File Under: How to Invest, Tax-Advantaged Investing

New Carried Interest Income Taxes Proposed

The Institute on Real Estate Management’s notice on the taxation of carried interests focuses on the capital gains that general partners earn in real estate investments as a share of the back end profits. The tax rates for these gains jump from 15% to over 39% and create a disincentive for them to generate real estate investment vehicles.

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Date: June 2nd, 2010, By Rocco Cortese, File Under: Real Estate Economy, Tax-Advantaged Investing

Case Study – Residential 1031 Exchange Acquisition

Our case study relative to acquiring single family homes is complete. Click on the following link to get to it. We have also included a spreadsheet detailing the investors returns. This is an interesting play because it mixes cash flow, diversification, and opportunistic investing into one strategy. With $895,000 the client completed a 1031 Exchange, acquired four different assets, and will ultimately finance $150,000 (tax deferred) out of the single family homes to use as he sees fit.

Click here to view: 1031 Exchange Case Study

Click here to view: Investor Returns Pro-Forma

Date: May 26th, 2010, By Rocco Cortese, File Under: Case Studies, How to Invest, Tax-Advantaged Investing

Is the 1031 Exchange Business Picking Up?

It looks like 1031 Exchange business is picking up. It is still way off the highs during the economic boom. One of my colleagues at a major QI (Qualified Intermediary, or Facilitator as they are also known), covers all of the Pacific Northwest as her region where she only covered the Marin, Sonoma, and Napa counties when the market was hot. I think they laid off 8 people and have not rehired. We still have quite a ways to go but it is positive to note that there is liquidity coming back to investment real estate.

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Date: May 20th, 2010, By Rocco Cortese, File Under: Messages From Rocco Cortese, Real Estate Economy, Tax-Advantaged Investing