Realized Blog

Your Vacation Home and the 1031 Exchange

Posted by Drew Reynolds on Oct 20, 2017

Consider the following.

You own a lakeside vacation home. Over the years, that home has been a great place for family gatherings, and to hang out on weekends. Now, the family is grown and you are ready to dispose of the property, hopefully without paying a boatload of capital gain taxes.

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Topics: 1031 Exchange, Real Estate Investing, 1031 Advanced Topics

Constructive Receipt Of Funds: A 1031 No-No

Posted by Drew Reynolds on Oct 16, 2017

We’ve written extensively on how you can take advantage of the Internal Revenue Code’s Section 1031 to defer tax liability on relinquishing property. We’ve also noted that the time period in which you can find a like-kind asset, and then buy it, is strict. If you miss the 45-day deadline (in which to identify a replacement asset) and the 180-day window (during which you must close on that replacement asset), the exchange might no longer be valid, and you end up owing taxes.

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Topics: 1031 Exchange, 1031 Advanced Topics, 1031 Exchange Basics

Digging Deep Into Depreciation And Proposed Tax Reform

Posted by David Dahill on Oct 5, 2017

Part 5 in the Realized Series "2017 Tax Reform Impact on Real Estate"

We’ve been writing extensively on tax reform issues, and for a very good reason. If the GOP’s Blueprint, entitled “A Better Way, Our Vision for a Confident America,” and President Do

nald Trump’s one-page “2017 Tax Reform for Economic Growth and American Jobs” end up becoming the new U.S. guide for taxes, look for changes on how real estate is acquired, held, and sold.

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Topics: 1031 Exchange, Capital Gains Tax General, 1031 Advanced Topics

Disasters and 1031 Exchanges (Part 2)

Posted by David Wieland on Sep 26, 2017

The Involuntary Exchange

Not all exchanges are voluntary. If your insured home or investment real estate was destroyed by a fire, earthquake, hurricane or other natural disasters beyond your control, you likely will receive insurance proceeds in amounts that are greater than your adjusted tax basis. In this situation, a taxable capital gain exists – even if your property was decimated through an “act of God.”

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Topics: 1031 Exchange, 1031 Advanced Topics

Disasters and 1031 Exchanges (Part 1)

Posted by David Wieland on Sep 13, 2017

August and September 2017 have been highlighted by a series of catastrophic storms. Hurricane Harvey roared ashore in South Texas, then parked on top of the Houston area, dumping more than 50 inches of rain in some areas. And, as of this writing, we are just beginning to assess the damage caused by Hurricane Irma.

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Topics: 1031 Exchange

Tax Reform And Mortgage Interest Deductions

Posted by David Wieland on Sep 7, 2017

Part 4 in the Realized Series "2017 Tax Reform Impact on Real Estate"


Much of the recent news coming from President Donald Trump’s administration has been focused on healthcare and the wall. Though Trump tax reform has been on the back burner, there are indications that Congress and the President will begin the process of tax overhaul in fall 2017. It’s uncertain how tax reform will impact the overall economy. However, based on the limited information we have, tax reform could have a profound change on how you invest, and what type of capital might make the most sense.

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Topics: 1031 Exchange, Real Estate Investing

Capital Preservation and Real Estate Investing

Posted by David Dahill on Aug 31, 2017

When the term “investment,” is tossed around, the assumption generally focuses on some kind of asset that generates a reasonable rate of return, relative to the monies invested and potential appreciation when the investment is ultimately sold. However, there are some investments out there where return on investment is not the primary objective. These types of investments may be referred to as “defensive” investments where the primary investment objective is preservation of funds. Their goal, as part of an intelligent portfolio investment strategy, is to protect invested capital.  

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Topics: 1031 Exchange, Real Estate Investing

The Securitized 1031 Exchange Market: A 10-Year Retrospective

Posted by David Wieland on Aug 23, 2017

More than 10 years ago, the securitized 1031 Exchange market (real estate interests that are packaged and sold as securities and that qualify for 1031 exchange purposes) was dominated by tenant-in-common (TIC) Sponsors. TIC investments grew at a frantic pace from the start of the new millennium, increasing in volume from under $500 million of annual equity raised in 2002 to over $3.6 billion annually by 20061.

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Topics: 1031 Exchange, 1031 Exchange Process, Replacement Property Interests

Your IRA Can Fund Real Estate

Posted by Drew Reynolds on Aug 16, 2017

Mention “individual retirement account,” and what might come to mind is “tax-deferred contributions.” You add cash, or cash equivalents, to your individual retirement account (IRA), to build value over time. An account administrator uses those tax-deferred contributions to buy stocks, bonds, funds, or other securities. When you retire, you have access both to the original contributions, and investment returns.

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Topics: 1031 Advanced Topics, Replacement Property Interests

Consider DST, Rather Than Real Estate, Gifting or Donations

Posted by David Wieland on Aug 9, 2017

Maybe you’re ready to do some estate planning and are figuring out what to do with that rental cottage in the Berkshire mountains, or the small office property you own in Texas. You might be thinking of leaving that property to your family or donating it to your alma mater or favorite charity.

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Topics: 1031 Replacement Properties, 1031 Exchange Process, Replacement Property Interests