A wise investor’s vehicle for deferring capital gains taxes or depreciation recaptures, 1031 exchanges were first adopted by the IRS in 1954. That’s when the present day definition of a like-kind exchange was adopted. Decades later, there are still many misconceptions about how these exchanges work. • Like-kind means “exactly the same.” The IRS requires… Continue reading Misconceptions About 1031 Exchanges
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Avoiding Financing Obstacles Through a DST
A 1031 exchange has some challenges built in, and a key obstacle to exchange success can be identifying suitable replacement properties within 45 days and securing financing and closing on the purchase within 180 days. In a Delaware State Trust, investors are not direct owners of the real estate; they hold beneficial interests in the… Continue reading Avoiding Financing Obstacles Through a DST
Delaware State Trust for Landlords Who Are Tired of the Management Hassles
On paper, your real estate investments have been a great success. You bought three rental houses 20 years ago for $150,000 each. They’re now fully depreciated, and you can net $450,000 on each. You’ve been a good—and sometimes great—landlord. So what’s not to love. The calls at 1 a.m. because the boiler shut down on… Continue reading Delaware State Trust for Landlords Who Are Tired of the Management Hassles
Banking Your Time With a DST
Albert Einstein said, “The only reason for time is so that everything doesn’t happen at once.” How often to you feel like you’re racing against the clock while multiple responsibilities happen all at once? The hours fly past while you’re hard at work. You put out fires, juggle a full plate of decisions, and in… Continue reading Banking Your Time With a DST
The New Tax Law and Like Kind Exchanges
On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act, enacting sweeping changes to the U.S. tax framework which took effect at the beginning of 2018. The new tax framework had one major change to Section 1031 of the IRS tax law: no longer can personal property, including franchise licenses, machinery and… Continue reading The New Tax Law and Like Kind Exchanges
What I Learned About 1031 Exchanges That Can Help You, Too
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