With more than 30+ years in the financial industry, Al Vanderlaan specializes in helping his clients invest in real estate to achieve a diversified portfolio.
1031 DST/TIC Exchange Investments
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. Investments in private offerings are generally illiquid in nature, do not offer guarantees of income or that objectives will be met, may be considered speculative in nature and could lose some or all of their value and principal investment. Some investments herein may not be suitable for all investors. We recommend you work closely with all your advisors to make the best decisions for your personal financial portfolio. 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 Investments in private offerings are generally illiquid in nature, do not offer guarantees of income or that objectives will be met, may be considered speculative in nature and could lose some or all of their value and principal investment. Some investments herein may not be suitable for all investors. We recommend you work closely with all your advisors to make the best decision for your personal financial portfolio. There are strict timing limitations. Specifically, if a 1031 exchange transaction is not properly constructed and executed in a timely manner, then an investor may lose all tax benefits of such transaction, including depreciation recapture. The relinquished property must be a qualifying property (i.e., like-kind replacement property). A Qualified Intermediary, as an independent third party, is needed to facilitate a 1031 exchange transaction and hold the funds on behalf of the investor.
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.
Conservation Land Offerings
A conservation easement is a restrictive covenant that is a voluntary agreement that allows a landowner to limit the type or amount of development or conserve and protect natural resources on their property while retaining private ownership of the land. The conservation easement is signed by the landowner, who is the easement donor, and the Land Trust or Conservancy, is the party receiving the easement. The Land Trust or Conservancy accepts the easement with the understanding that it must enforce the terms of the easement in perpetuity. After the easement is signed, it is recorded with the County in the record room and runs with the land and binds all future owners of the land.
Annuity Annuities are designed to be both a savings vehicle and a source of retirement income. Life Life insurance is most commonly used to help protect your family from any financial effects of your and/or your spouse's premature death.
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.
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.
*Creative Financial Services and SANDLAPPER Securities, LLC do not provide legal or tax advice.