Realized Blog

David Dahill

Recent Posts

What Is the 65-Day Rule?

While income tax rates and rules for individual and married taxpayers are complicated enough, the application of rates and thresholds to trusts adds a layer of complexity to financial planning. The 65-day rule relates to distributions from complex trusts to beneficiaries made after the end of a calendar year. For the first 65 days of the following year, a distribution is considered to have been made in the previous year.

Posted by David Dahill on Aug 6, 2021

Topic: Tax


How to Record Payments to Qualified Intermediaries Via Form 1042-S

Form 1042-S is sent to non-U.S. residents who have income in the U.S. Income is from U.S.-based entities. This income includes distributions from real estate properties or funds. A Form 1042-S must be filed for each type of income reported.

Posted by David Dahill on Jul 28, 2021

Topic: Tax


Part 3: Using Tax Planning In an Effort to Increase Returns – Real Estate Exchanges

At Realized, we believe that tax planning in real estate is about seeking opportunities that can help ensure that the amount of money you make remains money you keep. In our final post in this series, we’ll cover an additional tactic to consider when seeking ways to increase your after-tax cash flow: leverage tax-deferred real estate exchanges.

Posted by David Dahill on Jul 6, 2021

Topic: Tax


Part 2: Using Tax Planning In an Effort to Increase Returns – Increase Your Cost Basis

At Realized, we believe that tax planning in real estate is about seeking opportunities that can help ensure that the amount of money you make remains money you keep. In our second post in this series, we’ll cover an additional tactic to consider when seeking ways to increase your after tax-cash flow: increasing your cost basis.

Posted by David Dahill on Jul 2, 2021

Topic: Tax


Part 1: Using Tax Planning in an Effort to Increase Returns – Leverage Depreciation


At Realized, we believe that tax planning in real estate is about seeking opportunities that can help ensure the amount of money you make remains money you keep. And knowing your actual, taxable cash flow is one opportunity. In this three-part series, we’ll examine different ways to use tax planning that are designed to help keep potential profits in your pocket.

Posted by David Dahill on Jun 28, 2021

Topic: Tax


Form 8824 - Section III Explanation

Form 8824 is the part of an investor’s tax return that contains 1031 exchange transaction information. Section III of the form determines the net results of the transaction (gain or loss). This section is the 1031 exchange transaction and how the IRS receives information about the transaction’s gain or loss for tax reasons. 

Posted by David Dahill on May 14, 2021

Topic: Tax


What is a Partial 1031 Exchange?

Often, 1031 investors would like to set aside a portion of the money from their property sale. Perhaps they have college tuition or an upcoming wedding to consider. This begs the question: Is it possible to keep a portion of a property sale’s proceeds while still deferring the majority of taxes with a 1031 exchange?

Posted by David Dahill on Jul 6, 2020

Topic: 1031 Exchange


Can Foreign Investors Do 1031 Exchanges?

Can foreign investors take advantage of IRS §1031 to execute a tax-deferred exchange when selling their U.S. real estate assets? The short answer is yes. The longer answer is a bit more complex.

Congress enacted the Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”) to impose a tax on foreign investors selling real property assets in the United States. The act requires that anyone who buys real estate assets from foreign persons or entities must withhold a prescribed part of the purchase price, which would normally go to the foreign seller. Why exactly? To ensure that the foreign seller pays capital gains taxes when they are due.

Posted by David Dahill on Jun 21, 2020

Topic: 1031 Exchange


The Other DST – Deferred Sales Trust

We’ve talked before about 1031 Exchanges and Delaware Statutory Trusts (DSTs). Delaware Statutory Trusts can be attractive investments, especially if you want to own real estate, but don’t want the hands-on hassle. The DST can also provide a terrific tax-deferral mechanism if you decide to exchange into it from a real estate asset sale.

Posted by David Dahill on Jun 19, 2020

Topic: 1031 Exchange


Realized vs. Recognized Gains in Real Estate

Every real estate investor or property owner should be familiar with a couple of key concepts: “Realized Gain” and “Recognized Gain.” Although they sound similar, they are vastly different—and knowing the difference can dramatically impact your bottom line.

Posted by David Dahill on May 16, 2020

Topic: Capital Gains


Another Way To Own Investment Properties

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