10 Things To Know About 1031 Exchanges
Tuesday, May 10
Some investors have been wise to the tax benefits of a 1031 exchange for years. Others are new to the game and may wonder what all the fuss is about. They may hear the phrase “let’s 1031 that” bandied about by realtors, attorneys or other investors, but may not be clear on what this process invol...
Limits On Who Can Be Your Qualified Intermediary
Monday, May 09
When you want to complete a 1031 exchange and need to delay the acquisition of replacement property after you sell your relinquished property, you will need to use the services of a qualified intermediary. This is the individual who will temporarily hold the sale proceeds until closing occurs on ...
1031 Exchanges: Tax-Free or Tax-Deferred?
Friday, May 06
Investors who are inexperienced with 1031 exchanges often erroneously refer to these transactions as “tax-free.” Yet this is incorrect, with one exception (discussed in a minute).A 1031 exchange actually is a tax deferral strategy rather than a tax avoidance strategy. If you own business or inves...
Why Are Delayed 1031 Exchanges So Popular?
Thursday, May 05
The idea of conducting a 1031 exchange is appealing to investors for a number of reasons, particularly the tax-deferred nature of the transaction. Rather than paying capital gains tax immediately, an investor can trade up on investments and defer any tax liability for years. In some cases, where ...
Formation Of A Delaware Statutory Trust
Wednesday, May 04
Savvy investors understand that real estate ownership through a Delaware Statutory Trust brings unique benefits not found in other forms of investing that involves real estate.While many investors will simply participate in already-formed DSTs, some will choose to create their own. In either case...
Is Good Faith Enough For A 1031 Exchange?
Wednesday, May 04
Even investors with the best intentions sometimes hit a roadblock that threatens to derail their carefully planned 1031 exchange. So how forgiving is the IRS when it comes to extenuating circumstances? Not very.Countless cases exist where taxpayers missed deadlines by just a few days and saw the ...