#16 Finance Healing #16

  Captive Real Estate Investment Trusts for Property Developers For real estate developers, holding income-producing properties within a Captive Real Estate Investment Trust (REIT) offers a strategic path to reduce taxes, attract investor capital, and separate asset ownership from operations. Unlike public REITs, a captive REIT is a privately held structure typically controlled by the developer or sponsor — allowing more flexibility in income flow, dividends, and long-term exit planning. This guide will walk you through how captive REITs function, the advantages they provide, and how to build one for your development portfolio. 📌 Table of Contents What Is a Captive REIT? How Developers Use Captive REITs Benefits of the Captive REIT Structure Compliance, Dividends, and IRS Rules Strategies for Developers and Investors Further Resources 🏢 What Is a Captive REIT? A Captive REIT is a private real estate investment trust formed and owned by a p...

  Tax Treatment of Royalty Streams from Music or Patents 📌 Table of Contents What Counts as Royalty Income? Ordinary Income vs. Capital Gains Self-Employment Tax Considerations Taxation on Selling Royalty Streams How to Report Royalty Income Conclusion What Counts as Royalty Income? Royalty income arises when someone else uses your intellectual property (IP) and pays you for the right to do so. This includes music royalties, book publishing rights, patent licensing fees, oil and gas royalties, and image licensing. In most cases, these payments are considered taxable income by the IRS. Ordinary Income vs. Capital Gains Generally, royalties are taxed as **ordinary income** in the year they are received. This applies to recurring payments from licensing music, patents, or other IP while you retain ownership. However, if you sell the rights to future royalties outright, the transaction might qualify for **capital gains** treatment—depending on w...

  Exploring Impact Investing in Community Development Financial Institutions (CDFIs) Impact investing is reshaping the way investors allocate capital, balancing financial returns with measurable social outcomes. One of the most effective ways to engage in impact investing is through Community Development Financial Institutions (CDFIs), which channel capital to underserved communities and stimulate economic growth. This article explores how CDFIs work, their benefits, risks, and how investors can participate in creating meaningful change. Table of Contents What Are CDFIs? How Do CDFIs Work? Benefits of Investing in CDFIs Risks and Considerations How to Get Started What Are CDFIs? CDFIs are specialized financial institutions that provide affordable loans, credit, and financial services to communities that lack access to mainstream financing. They support small businesses, affordable housing projects, nonprofits, and individuals in low-income areas. Examp...

  ESG Investing Beyond the Basics: Finding True Impact Funds Environmental, Social, and Governance (ESG) investing has surged in popularity, with more investors seeking to align their portfolios with their values. However, not all ESG funds are created equal, and many fall short of delivering real-world impact. This guide will help you go beyond the basics and identify true impact funds that create meaningful change while delivering strong returns. Table of Contents What Is ESG Investing? Why Go Beyond the Basics? How to Identify True Impact Funds Tools and Resources Final Thoughts What Is ESG Investing? ESG investing integrates environmental, social, and governance factors into investment decisions. It aims to generate sustainable, long-term financial returns while making a positive impact on society and the planet. Examples include investing in companies with low carbon emissions, fair labor practices, or diverse leadership teams. Why Go Beyond th...