How to sell a real estate partnership - without the shelter
Article Abstract:
Changes in tax laws and in the real estate market have have made limited partnership real estate investment less useful as a tax shelter, but real estate partnerships still offer many advantages. Under the proposed tax reform, the top tax rate will be 27 percent, which means that $100,000 in losses will be worth only $27,000 in savings, and it is also likely that the deductions on losses from real estate partnerships will be reduced. Limited partnerships can still yield after tax income that is equal to or better than municipal bonds. Property, unlike municipal bonds, can appreciate in value. Lower interest rates have also made real estate an attractive investment and leverage, if properly used, can increase earnings from property appreciation. Although segments of the real estate market have been overbuilt, certain kinds of property, such as mid-size shopping malls and mini-storage warehouses, are still profitable.
Publication Name: FE: the Magazine for Financial Executives
Subject: Business
ISSN: 0883-7481
Year: 1986
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Pension accounting: how to structure your year-end financial planning
Article Abstract:
The tax rates for incremental income are expected to decrease when the Tax Reform Act of 1986 becomes law. As a result, many companies may pursue a strategy of accelerating pension plan deductions by making an extraordinary pension contribution in 1986 and taking the deduction while the company's tax bracket is higher, instead of waiting to take future deductions in a lower tax bracket. A way to determine the advantages and disadvantages of making an extraordinary contribution is described. The calculations can be performed on a microcomputer, and the method can help pension accountants evaluate the impact that an extraordinary pension contribution will have on cash flow, the tax savings through 1991, and the risk factors involved.
Publication Name: FE: the Magazine for Financial Executives
Subject: Business
ISSN: 0883-7481
Year: 1986
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Ten rules for successful investing
Article Abstract:
Since it is not easy to research obscure stocks, the investor should purchase more well-known stocks. Investors should hold on to winning stocks and avoid the temptation to sell them so quickly. Since current yield is so crucial, investors should keep away from high-yield stocks. Common stocks, like bonds, preferred stocks, money-market funds, and certificates of deposit, offer more promise over the long-run.
Publication Name: FE: the Magazine for Financial Executives
Subject: Business
ISSN: 0883-7481
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
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