1031 exchange: Why Invest In Oil & Gas Royalties?
- 08/28/09 05:13 AM
ROYALTY BASICS Royalty interests are as old as oil & gas exploration. Royalty interests are essentially rental payments, paid as a percentage of production, by oil & gas producers such as Exxon, Shell and Chesapeake to royalty owners. Royalty owners also enjoy payments for new production from any additional wells drilled and completed on their property. Royalty owners are not responsible for costs or risks associated with monthly upkeep, exploration or development on their property. Instead, royalty owners simply receive their monthly percentage share of revenue from currently producing wells. Institutions historically have invested in royalties for long lived cash … (1 comments)
1031 exchange: What is a Qualified Intermediary (QI) and when should you use one?
- 01/25/09 06:31 AM
A Qualified Intermediary (QI) is a professional provider of the services to administer all the factors required for a successful 1031 Exchange. Sometimes QI's are referred to as "accommodators" or "exchange facilitators". A QI must be an independent person or company which has no personal relationship with the exchangers. The taxpayer cannot use any Real Estate agent, broker, investment banker or broker, accountant, attorney, employee or anyone who has worked for the taxpayer in those capacities within the past two years. The major requirement of a successful exchange is that the IRS is convinced that the funds generated by the sale … (0 comments)
Yes you can, but it has to be done just right, and there are some limitations on how you use your property. Any property purchased by your IRA must be used for investment purposes only--so your replacement property cannot be a vacation home for you to use personally and it cannot become your personal residence in the future. In fact you cannot rent your property out to any disqualified person, which is your business or any immediate family member except siblings. In order to get the full benefit of your 1031 exchange, you must buy and take title to … (1 comments)
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