David Dahill

Recent Posts

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

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

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

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

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

Recession Resistant Property Types Part II

In our first article on recession-resistant property types, we went over a broad range of property types that tend to perform well during a recession. In this article, we’ll look at three more types —  office, medical office, and retail. We’ll also compare certain subgroups that performed poorly during the last recession with other subgroups that fared much better.

Posted by David Dahill on May 1, 2020

You Can Do a 1031 Exchange on a Primary Residence—Here's How

One of the biggest questions we get is: “can I use my primary residence in a 1031 tax-deferred exchange?” Well, maybe not everyone, but certainly some. But, can you? The IRS’ short answer is a stern no. However, as is usually the case under the Internal Revenue Code, there are exceptions.

Posted by David Dahill on Apr 13, 2020

Updated 180-Day Date For 1031 Exchanges

Are you currently in a 1031 exchange or contemplating beginning an exchange? If you sold an investment property between October 17, 2019 and December 31, 2019, you would normally plan on filing IRS Form 4868 - Application for Automatic Extension of Time to File U.S. Individual Income Tax Return on or before April 15, 2020.  However, this year may be different with the extended IRS filing deadline of June 15, 2020.

Posted by David Dahill on Mar 27, 2020

Tax Season Is Coming: Understanding Capital Gains Reporting

With the holidays and celebrations in the rear-view mirror, your attention should turn to the next big event. Not Valentine’s Day or St. Patrick’s Day, but April 15, the tax-filing date. Even as you gather paperwork and finalize profits, losses, and expenses from 2019, it’s important to pay extra attention to your asset sales. In most cases, you’ll be required to report capital gains from those sales to the IRS through three forms: 8948, 1099-B, and Schedule D.

Posted by David Dahill on Feb 7, 2020

The Tax Benefits of Real Estate Investing

The Land Act of 1820 was one of America’s first solutions for motivating people to buy land in “The West.” By reducing the minimum price and size of a standard tract, the government made land ownership throughout the country accessible for average Americans—not just the wealthy.

Posted by David Dahill on Jan 21, 2020

Another Way To Own Investment Properties

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