Intermediate30 minutes14 terms

Charitable Giving in Retirement: Key Terms

This collection offers a curated list of key terms that might be helpful when exploring charitable giving strategies in retirement. It focuses on commonly referenced concepts and tax-efficient methods for supporting causes you care about. Use it as a quick reference to understand the terminology you may encounter.

Term Collection

Depreciation

Depreciation in real estate is an income tax deduction allowing investors to recover the cost of an income-producing property over its useful life, excluding land value, thereby reducing taxable income.

Intermediate13-14 min

Alternative Investments

Alternative investments are financial assets outside of traditional stocks, bonds, and cash, including real estate, private equity, and commodities, often used for diversification and higher return potential.

Intermediate5-6 min

Estate Planning

Estate planning is the process of arranging for the management and disposal of a person's assets, including real estate, during their life and after death, to minimize taxes and ensure wishes are met.

Intermediate15-18 min

Tax Efficiency

Tax efficiency in real estate investing refers to strategies and practices aimed at minimizing an investor's tax liability, thereby maximizing after-tax returns and overall profitability.

Intermediate2-3 min

Capital Gains Tax

Capital Gains Tax is a tax on the profit realized from the sale of a non-inventory asset, such as real estate, calculated as the difference between the selling price and the adjusted cost basis.

Intermediate13-14 min

Tax Deferral

Tax deferral is the legal postponement of paying taxes on investment gains or income until a future date, allowing capital to remain invested and grow through compounding.

Intermediate13-16 min

Tax Advantages

Tax advantages in real estate investing refer to the various legal deductions, credits, and deferrals that can reduce an investor's taxable income and overall tax burden, making real estate a tax-efficient asset class.

Beginner2-3 min

1031 Exchange

A 1031 Exchange allows real estate investors to defer capital gains and depreciation recapture taxes when selling an investment property by reinvesting the proceeds into a new "like-kind" investment property within strict IRS timelines.

Advanced15-18 min

Cash Flow

Cash flow in real estate investing represents the net income generated by a property after all operating expenses and debt service payments have been made. Positive cash flow indicates profitability, while negative cash flow suggests a loss.

Intermediate2-3 min

Self-Directed IRA

A Self-Directed IRA (SDIRA) is a specialized retirement account allowing investors to hold alternative assets like real estate, private equity, and precious metals, offering enhanced control but requiring strict adherence to complex IRS regulations to avoid prohibited transactions and Unrelated Business Income Tax (UBIT).

Advanced11-12 min

Donation of Property

The voluntary transfer of real estate ownership from an individual or entity to a qualified charitable organization, often yielding significant income tax deductions and capital gains tax avoidance for the donor.

Intermediate5 min

Passive Income

Passive income refers to earnings from an enterprise in which an individual is not actively involved, typically generated from real estate investments like rental properties, REITs, or syndications, requiring minimal ongoing effort after initial setup.

Intermediate13-15 min

Market Value

Market value in real estate is the most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller acting prudently, knowledgeably, and typically uninfluenced by undue stimulus.

Beginner15-18 min

Charitable Remainder Trust

A Charitable Remainder Trust (CRT) is an irrevocable trust that provides an income stream to the grantor or other non-charitable beneficiaries for a specified term, with the remaining assets distributed to a qualified charity upon the trust's termination.

Advanced8-9 min