The Treasury Department governs 1031 exchanges, and they’ve made one thing very clear: These are not do-it-yourself real estate ventures. In fact, you won’t be able to use your parents, child, or sibling, or even your attorney, real estate agent, or CPA as a middle person in the exchange and still expect to defer capital… Continue reading What Is a Qualified Intermediary?
Who Qualifies? If you own an investment or business property, you can qualify for a 1031 exchange, whether you’re an individual, C or S corporation, partnership, or LLC. Same Taxpayer The buyer of the replacement property must be the same tax entity as the seller of the relinquished property. A Qualified Intermediary A Qualified Intermediary… Continue reading A Quick Look at 1031 Rules
Internal Revenue Service tax code 1031 relates to real estate exchanges, allowing investors to defer capital gain tax payments on the sale of the property by reinvesting the proceeds into another business or investment. It is one of the most underutilized sections of the tax code, even though it offers many benefits to investors who… Continue reading What I Learned About 1031 Exchanges That Can Help You, Too
One of the most important decisions you’ll make as a commercial real estate investor is determining how to structure your borrowing. Commercial real estate investors usually have two types of loan financing options: recourse debt and non-recourse debt.
Historically, a statutory trust is created so that a property can be held by multiple parties, for rental purposes or sale, at their discretion. All income from the property prior to its sale, and all proceeds of its sale, are then held in trust for the beneficiaries. In 1988, the state of Delaware enacted the… Continue reading What Is a Delaware Statutory Trust (DST)?
If you’re an investor looking to grow your portfolio, 1031 exchanges are something you should know about. What is a 1031 Exchange? Defined by the IRS Simply, 1031 is a tax code that allows an investor to defer capital gains taxes by reinvesting the proceeds of one business or investment asset into another. Through 1031 exchanges,… Continue reading What Is a 1031 Exchange?