Attorneys practicing in and around the Chicagoland area. Experienced in the practice areas of Real Estate Law, Mortgage Foreclosure Defense Litigation, Social Security Disability, Business Law, & Estate Law.

 - Attorneys practicing in and around the Chicagoland area. Experienced in the practice areas of Real Estate Law, Mortgage Foreclosure Defense Litigation, Social Security Disability, Business Law, & Estate Law.

New Federal Tax Rules Create Advantage for REIT Investments

Chicago skyline

In this post, we discuss how REITs have become more desirable than direct real estate investments because of changes in federal tax rules.

Real estate investment trusts or REITs have long had investment advantages over directly owning properties.

Recent changes in federal tax rules have only increased their desirability by offering improved net returns from REIT investment as opposed to direct real estate investments.

 

The following story originally appeared in FA Playbook on the CNBC website on June 18, 2019, and was written by David Robinson, founder and CEO of RTS Private Wealth Management.

 

New Federal Tax Rules Create Advantage for Real Estate Investment Trusts

Loan Modifications and WorkoutsAs Generation X and millennials inherit their baby boomer parents’ assets amid the so-called Great Wealth Transfer, some will look to invest it in rental property to generate income.

This property might be a duplex, an apartment building or, depending on the location, a single-family house that could eventually become a retirement home.

Yet many aren’t aware that because of the various costs and risks involved, becoming a landlord — a role fraught with headaches — may not turn out to be profitable.

 

An alternative to direct investment

commercial buildingA hands-off alternative to direct real estate investment is a real estate investment trust. These firms sell shares to investors, use the cash to buy residential, commercial and industrial property to lease out, and pay dividends to shareholders.

As an investment, REITs have long had advantages over owning property directly. This advantage gap is widened by new federal tax rules.

 

Click to Continue Reading >>>

 


* Advertising Material: To the extent that the information in this post is interpreted as attorney advertising in accordance with the Illinois Rules of Professional Conduct or within the meaning of state bar rules from all other localities, this statement is made pursuant to those rules.

Specialties: Specialization claims are prohibited by Illinois Supreme Court Rules and we do not claim to be specialists. The content of this e-mail is organized and presented for the sole purpose of general information. None of the included content should be construed as legal advice. Viewing this e-mail or e-mailing the account holder does not create an attorney-client relationship. NOTICE: This page may be considered advertising material.


 

The Law Offices of Lora Fausett P.C. provides real estate law services including loan modificationsbuying and selling legal assistanceshort sales and deeds in lieumortgage foreclosure defense, and more.

Located in Glen Ellyn, Illinois and serving clients in DuPageCookKane, Will, and Kendall Counties.

For Information Call 630-858-0090