What Does The Qualified Intermediary Do, Exactly?
Monday, June 06
If you want to realize the tax deferral benefits of a 1031 exchange, you must follow stringent IRS rules, including the use of a qualified intermediary (also known as an Exchange Accommodator or Facilitator). This middle-person has a very specific role during the transaction. Technically, he or s...
Are There Special Rules When Related Parties Complete A 1031 Exchange?
Sunday, June 05
When related parties exchange property and want to qualify for tax-deferred treatment under section 1031, special rules apply to the transaction. These special rules were implemented by the IRS to try and curb basis shifting abuse between related parties. One of the most important rules to know a...
Net Lease Casual Dining Properties Are On Fire
Sunday, June 05
According to a recent article in Realty Biz News, cap rates in the net lease casual dining restaurant sector were 5.75% in the first quarter of 2016. Casual dining restaurant properties with corporately guaranteed leases had cap rates of 5.65% while franchisee leased properties were priced 65 bas...
Understanding "Like Kind" In A 1031 Exchange
Thursday, June 02
A 1031 exchange can offer powerful tax-deferral benefits to an investor, but only when stringent IRS rules are met. One of these requirements is that the relinquished property and replacement property involved in the 1031 exchange is “like-kind.”In many transactions, “like kind” is fairly straigh...
Understanding Delaware Statutory Trusts
Thursday, June 02
A Delaware Statutory Trust (commonly referred to as a DST) is, as the name suggests, a legal entity created as a trust under Delaware state law. A DST is created for real estate investment purposes, and is especially useful in a 1031 exchange.Under a DST, investors each own a pro rata share of th...
In A Nutshell: Tenancies In Common & 1031 Exchanges
Monday, May 30
Tenancy In Common (TIC) is a way for two or more individuals to have an undivided fractional ownership interest in a single property. With a TIC, each owner has individual rights and obligations related to the property. These rights equal the proportionate share of the owner’s interest.Having an ...