David’s Recent Posts
Simple Guide to Choosing a 1031 Qualified Intermediary
7 Questions to Ask Before Choosing a 1031 Accommodator... In the chaos of closing on a sale of your property, the last thing most people are thinking about is choosing a qualified intermediary, or “QI” (a.k.a., an exchange “accommodator” or “facilitator”). After all, aren’t they all the same? Aren’t all qualified intermediaries “qualified”? The answer is emphatically, no.
You Can 1031 Exchange Into A REIT, Here's How
Some 1031 exchange investors have wondered whether they can sell their investment properties and complete a 1031 exchange into a Real Estate Investment Trust (REIT). The short answer is yes, but investors must follow some complex steps to successfully complete the exchange.
How to Use Risk to Manage Real Estate Investments
This article was written by Realized Founder and CEO David Wieland and originally appeared on MarketWatch. You can find the full article here. In our experience, real estate investment properties aren’t typically managed with the same discipline as traditional asset classes. Generally accepted and standardized measures of traditional asset risks don’t exist in real estate, and there is no framework for evaluating real estate risk. However, there are risk attributes with which you should familiarize yourself.
Tax Reduction Strategies For Investment Property Owners
Investing in real estate is a potential way to build long-term wealth, produce cash flow, and create a profitable return when you sell an asset. However, these investments have their own unique set of challenges, one of which includes taxes.
How Will the Inflation Reduction Act Affect Audits?
As is often the case with marquee legislation, the Inflation Reduction Act of 2022 has a subject title designed for appeal rather than accuracy. In this case, there is some question about the degree (and direction) of the new law's ability to affect inflation. However, there is no question that it will significantly affect several areas of the U.S. economy. Secondary to the potential impact on inflation, the legislation may increase the ability of the IRS to perform audits. In that scenario, will taxpayers reporting 1031 exchange transactions be targeted? It’s a good question to consider, especially since the tactic has recently been deemed at risk of modification or elimination in past election cycles.
What Is A DST, And How Are They Used For 1031 Exchanges?
DST is an abbreviation for Delaware Statutory Trust, a legal entity constructed under Delaware law. Despite the name, neither the property nor the investors need to be located in Delaware. In a DST, each investor has an ownership interest in the Trust, which in turn owns the property. Investors are known as “beneficiaries” of the Trust. For these reasons, the security that an investor in a DST owns are called “beneficiary interests.” The IRS treats DST beneficiary interests as direct property ownership, thus qualifying for a 1031 exchange.
Disadvantages of Delaware Statutory Trust (DST) 1031 Exchange Replacement Properties
Delaware Statutory Trusts (DSTs) offer the opportunity for passive investments in commercial real estate assets that typically are out of financial reach for most solo investors.
What Real Estate Investors Need To Know About Biden’s Tax Proposal
President Biden’s tax agenda includes several changes that may affect real estate investors. One of the more high-impact changes is the potential elimination of the 1031 exchange which many real estate investors take advantage of every year. Real estate tax law changes are expected to include:
1031 Exchanges Escaping the Chopping Block For Now
President Joe Biden signed nearly three dozen executive orders in the first six days of his administration. Most of them involve rolling back policies enacted under his predecessor or dealing with the ongoing Covid-19 pandemic.
Evaluating Real Estate Risk
Every investment involves risk with the possibility of gain. Where risk is the potential for financial loss and/or uncertainty in investment decisions or activities, accurately quantifying the level of risk is key to healthy investing.
