Distinct to our industry, we have access to an array of Alternative Investment products for diversification that are not available to the general public. These are available for direct investment by investors meeting net worth and income standards, including:
1031 Exchange Properties (securitized) View Inventory
When it is time to sell an investment property (met expectations, fully depreciated, tired of active management), there are many factors to consider. Whether investors are seeking to maximize gains, looking to increase the current level of income, or seeking to dispose of an underperforming asset, simply liquidating a property can create a number of taxable or recapture liabilities and obligations. Investors are taking the first step in maximizing investment results by executing a 1031 Exchange. In some of the highest tax brackets, simply “cashing out” can erode up to 40% of the gains on profitable, low basis assets on a combined state and federal level. With guidance from the Internal Revenue Service, investment sponsors construct securitized real property investments for use as suitable replacement property in a 1031 Exchange. By reinvesting sale proceeds into a securitized fractional real property program, investors may:
- Defer Tax Liabilities Indefinitely
- Keep Investment Dollars Fully Invested
- In Many Cases Improve Upon The Grade and Quality Of Holdings
A REIT (Real Estate Investment Trust) is a company that owns or finances income-producing real estate. Modeled after mutual funds, REITs provide investors of all types regular income streams, diversification and long-term capital appreciation.
A mutual fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.
Oil and Gas
Costs to develop an oil or gas well for the elements that are not a part of the final operating well offer tax benefits. Intangible drilling costs (IDCs) include all expenses made by an operator incidental to and necessary in the drilling and preparation of wells for the production of oil and gas, such as survey work, ground clearing, drainage, wages, fuel, repairs, supplies and so on. Broadly speaking, expenditures are classified as IDCs if they have no salvage value. Since IDCs include all real and actual expenses except for the drilling equipment, the word “intangible” is something of a misnomer.
A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit from the total they owe. Incentive tax credits may be used to encourage behaviors like investing or parenting. A credit directly reduces tax bills, unlike tax deductions and tax exemptions, which indirectly reduce tax bills by reducing the size of the base (for example, a taxpayer’s income or property value) from which the tax bill is calculated. Most tax credits are nonrefundable tax credits and so do not apply if no taxes are owed. However, some tax credits are refundable tax credits, so if the credit exceeds the amount of taxes owed, the excess is returned to the taxpayer.
Other Private Placement Securities
A private placement is the sale of securities to a relatively small number of select investors as a way of raising capital.