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Is Gold Worth Investing In During COVID 19? Gold bars and stok market Due to COVID 19 or coronavirus,  financial markets have plummeted  and unemployment has skyrocketed. These events have made everybody anxious with investors desperately searching for safe places to place funds. You might have considered investing in fixed income (i.e bonds), but these can be subject to interest rate and inflation risk. It could be wise to look at investments that aren’t susceptible to inflation, like precious metals since the government is increasing spending. Below, you’ll learn about the top reasons to invest in Gold during the COVID 19 pandemic. Inflation and Deflation Hedge Gold is a tangible metal that has a finite supply, unlike dollars that can be endlessly printed by the Federal Reserve. Currently, the government has lowered interest rates,  offered special business relief packages , and “free” stimulus checks to help those struggling due to the COVID 19 pandemi...

Is Oil Worth Investing In During COVID 19? COVID 19 or the CoronaVirus, has caused many people to lose their jobs and has devastated many industries. Unfortunately, many people have been stuck at home due to the quarantine which has diminished the need to travel. This has negatively impacted many industries like automobile manufacturers and oil companies. Despite this, investing in oil could be a good investment long term and this guide will discuss whether you should invest in oil during this time. Tread with Caution Oil prices have declined by over 70% since January and even large companies like  Royal Dutch Shell (RSD.A)  and  Exxon Mobil (XOM)  have lost up to 56% of their value. This is a troubling sign since these larger companies have been around for decades.  The West Texas Intermediate,  which is the US oil benchmark, has dropped to $20 per barrel from $60 per barrel in early 2020. On April 2020, this benchmark has slid to record level lows ...

Investing in Gold IRA FAQ's– What You Need to Know Many investors who want to diversify their individual retirement accounts (IRAs) from the usual stocks, mutual funds, and bonds might want to invest in a gold IRA. Gold offers many benefits other than its glittering appeal. It’s a durable asset that retains or increases its value during unstable stock markets, political upheavals, and inflation.  A gold IRA is also known as a precious metal IRA and works pretty much like a regular individual retirement account. The same distribution rules, regulations, and contribution limits apply. However, unlike a traditional IRA that holds paper assets, a gold IRA has physical bullion, including coins, bars of gold, and other approved precious metals like silver, palladium, and platinum.  Gold is among the few physical commodities that the Internal Revenue Service (IRS) allows IRAs to invest in. However, before you decide to invest in gold bullion, it is essential t...

Rules and Regulations For Gold IRA One of the retirement options worth exploring is investing in a gold IRA , which involves adding precious metals to your retirement portfolio. The investment option has a lower risk compared to the regular currency alternative. Factors like inflation do not influence it. However, gold IRA accounts still fall under regulations of the IRS . They enforce strict measures to ensure account owners and managers maintain those precious metals’ accounts accordingly. Understanding those rules can allow you to maximize the potential benefits. It also ensures you capitalize on your retirement strategy as you retain control of the precious metals available in the self-directed IRA until you retire. Gold IRA Account Types The term gold IRA refers to an individual retirement account like any other. The only difference is that you get more control over the precious metals, such as gold bars, gold coins, silver coins, and other approved precious metals. The invest...

Real Estate Investing Tax Advantages Are you thinking about investing in real estate? Are you wondering about the taxes associated with real estate investing? Here’s what you need to know about the tax benefits of real estate investment . Tax Deductions As a real estate investor, some of the tax deductions you can enjoy include: a) Mortgage Interest – It applies to the original loan on your primary residence as well as refinanced mortgages, investment property loans and home equity loans. It’s also applicable to your lines of credit, insurance premiums, and any other payments done through escrow. Your mortgage lender should provide you with form 1098 to show the interest paid throughout that year and your applicable deductions.   b) Business Expenses – Any expenses that your make while managing your property and your real estate investing business will be reduced from your tax bill. You can deduct expenses on your home office, such as phone bills, internet bills, and p...

The Benefit of A Delaware Statutory Trust And A 1031 Exchange Over the past decade, several changes to tax laws have created new opportunities for eager investors. One example is the combination of Deleware statutory laws and IRS code Section 1031 . The result is a Delaware Statutory Trust(DST), which can be used to avoid excessive tax rates and generate a capital gain. It’s a promising opportunity for many new investors and long-term business owners alike. However, it can be a confusing subject and requires a basic understanding of operation before it can be properly utilized. What Is IRS Code Section 1031? To begin with, let’s look at IRS Section 1031 and how it can be used to increase capital gains. Also called a 1031 exchange or a like-kind exchange, this IRS code allows property owners to exchange one investment property for another of a like-kind. By making this exchange, the investor can avoid or minimize capital gain taxes on the property. There’s no limit to how many times ...

What Is The 1031 Exchange And Its Rules If you are an owner of investment property and you would like to sell the property so you can buy a different piece of property, it is critical that you are aware of the 1031 tax-deferred exchange. A 1031 exchange, is also known as a like-kind exchange or starker exchange. It is a convenient strategy that permits an investment property owner to sell the property and purchase like-kind property while putting off capital gains tax in the process. Real estate prices in a lot of cities in the United States have become really expensive so much so that they well surpassed the bubble price estimation levels over 10 years ago. To effectively use the 1031 exchange strategy, the two properties involved in the trade have to have the same financial valuations. Therefore, a lot of financially successful investors use this strategy to defer tax (There are also other benefits of investing in a 1031 Exchange ). The following is a comprehensive breakdown of the ...

What Benefits Are There In A 1031 Exchange? The 1031 tax-deferred exchange is a widespread facility that both new and experienced investors make the most of. Tax-deferred exchanges existed since 1921. One of the crucial benefits of the 1031 exchange is it allows you to dispose of a property without spending anything on capital gain tax liability. This facility gives more purchasing power to investors. Veterans believe there is nothing wrong with utilizing this facility to the fullest, especially with significant property appreciations and strong economic growth in recent times. It not only boosts the purchasing power of investors but also offers many other benefits when it comes to income and cash flow. Diversification or consolidation 1031 exchange gives you the flexibility to swap one property for many others. Investors usually look to diversify their portfolio as much as they can. This is one of the easiest ways to consolidate multiple properties into a single unit. You can...