Part 2 in the Realized Series "2017 Tax Reform Impact on Real Estate"
It’s no secret that President Donald Trump and the Republican-controlled Congress have made tax reform a huge item on their agendas. Though the rhetoric is plentiful, what has been released so far is a one-page reform proposal from the Trump Administration, and the House of Representative’s tax reform proposal, A Better Way Forward on Tax Reform which was issued in 2016.
Topics: 1031 Exchange, Real Estate Investing
A recurring theme in our writings is managing risk in real estate investing. While most investors understand that debt can be a powerful tool to enhance returns, it is a “double-edge sword” that may increase the risk profile of an investment. However, a lesser understood risk of mortgage financing is its potential to increase losses beyond the amount of equity invested.
Topics: 1031 Exchange, Real Estate Investing
Much of what we write about focuses on exchanging from a real estate holding into a Delaware Statutory Trust (DST). Thanks to Internal Revenue Code, Section 1031 and Delaware’s statutory law, you can defer capital gains taxes from the sale of your property, without stressing to find a “like” property in a 45-day period. Additionally, that DST gives you the perks of property ownership, while avoiding the “terrible Ts” of toilets, trash and tenants.
Topics: 1031 Exchange, Real Estate Investing, 1031 Advanced Topics
One question we’ve been asked a lot lately by 1031 exchange investors is whether it’s possible to do a 1031 exchange into a Real Estate Investment Trust, or REIT. The short answer is: “you can do a 1031 exchange into a REIT if you follow a few steps.”
Topics: 1031 Replacement Properties, 1031 Exchange Process, Real Estate Investing, 1031 Advanced Topics
Tax Basis in Real Estate Part III
Topics: 1031 Exchange, Real Estate Investing, 1031 Exchange Basics
Delaware Statutory Trusts or DSTs are an alternative for 1031 exchange investors seeking replacement properties offering the potential for monthly income and diversification without any on-going landlord duties. Since 2004, when the IRS approved the Delaware Statutory Trust for 1031 exchange-qualified co-ownership, investors have purchased approximately $35 billion worth of real estate/replacement properties.
Topics: 1031 Exchange, 1031 Replacement Properties, Real Estate Investing
One of the first questions, and frankly one of the most important, I typically ask real estate owners who are considering or are in the midst of a 1031 exchange is “what is your adjusted basis in the property being sold?” I dare say that 95 percent of the real estate owners I speak with on a daily basis don’t know the answer to this question.
Topics: Real Estate Investing
A key concept in real estate investing, particularly with single-tenant, net-leased properties, is the credit quality of the underlying tenant. A credit rating is an estimate of an entity’s ability to honor its financial commitments.
Topics: 1031 Exchange, NNN Single Tenant Properties, Real Estate Investing, 1031 Exchange Basics
Part 3 in the Realized Series "Risk Management and Real Estate"
Topics: 1031 Exchange, Real Estate Investing
