Realized Blog

David Dahill

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All Is Not Lost With Suspended Losses

Posted by David Dahill on Mar 22, 2018


A nice benefit of real estate investment is all the potential tax benefits. A well-thought-out real estate strategy can generate tax-sheltered or even tax-free cash flow for years. However, as any seasoned real estate investor will tell you, there are times when real estate investments generate losses whether from the aggressive use of allowed depreciation (good) or some vacancy or rental loss (bad). Common sense might dictate that those losses could be deducted in the year they occur, but because real estate income losses are always subject to the Passive Activity Loss (“PAL”) rules of the IRS, this is not always the case.

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In a 1031 Exchange?  You May Need to File a Tax Extension

Posted by David Dahill on Nov 30, 2017

Are you currently in a 1031 exchange or contemplating beginning an exchange before the end of the year? If you sold or are planning to sell investment property between October 17, 2017 and December 31, 2017, you should 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, 2018.

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The Other DST – Deferred Sales Trust

Posted by David Dahill on Nov 17, 2017

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.

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The Facts About Recession-Resistant Real Estate

Posted by David Dahill on Oct 26, 2017

All commercial real estate is cyclical. Historically, some property types have values that tend to correlate with overall economic conditions more so than others. Retail and office properties for example have been known to take a hit during economic downturns. During the Great Recession and its aftermath, apartments became a hot investment ticket, while single-family housing values plummeted.

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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 Donald 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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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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Tax Reform And Real Estate: An Overview

Posted by David Dahill on May 31, 2017

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.

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Losing Money in a 1031 TIC?

Posted by David Dahill on Feb 3, 2017

Recently, I’ve had several conversations with real estate investors who own Tenants-In-Common (TIC) replacement properties that are going to be sold in the near future. In each case, sometime during the past decade they used part of their 1031 exchange funds to purchase TIC properties that are now being sold because mortgage is coming due. Unfortunately, several of these investors will receive substantially less in sale proceeds than they originally invested due to poor property performance. Needless to say, these folks aren’t real happy.

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How Are Capital Gains Taxed?

Posted by David Dahill on Dec 7, 2016

Calculating exactly how your capital gains are taxed is not always so simple. There are many complicated rules and stipulations to keep in mind, and it can get confusing very quickly. We've broken down the taxation of your capital here.

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Pros And Cons Of Various Property Types

Posted by David Dahill on Nov 23, 2016

Although most commercial real estate properties have the ability to produce income, the strengths and risks in their potential cash flows differ by type of property. Traditional commercial property types are generally considered to consist of multifamily, retail, office and industrial, however, several other property types are becoming more accepted by investors. Let’s take a quick look at different investment property types along with their relative pros and cons. It should be noted that this post is a generalization and that all properties are subject to asset-specific traits.

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