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How Does the 1031 Exchange Work in Conjunction with Depreciation on Investment Properties?
Selling an investment property for a gain can result in large tax bills. Some of that bill may include depreciation payments. This is called depreciation recapture. The recaptured depreciation is taxed at a different tax rate. Does a 1031 defer depreciation recapture taxes or does depreciation continue as if it is the same property?
How To Sell Rental Property and Defer Paying Taxes
When you are fortunate and able to sell your rental property for a profit from the initial investment you made in it — it’s also a way for you to let go of landlord responsibilities while accessing liquidity.
Tenant in Common and Divorce: What You Need to Know
Divorce can have profound impacts on many aspects of your life, from living arrangements to financial and legal issues that need to be sorted out.
UPREIT 721 Exchange: What They Are & How They Work
Capital gains taxes can make a considerable dent in your overall profits from a real estate sale, especially if you’re in the top tax brackets. It’s not surprising that many investors look for ways to defer tax liabilities. Several types of investment vehicles offer such benefits, and among these is the 721 Exchange, also called UPREIT.
What Is Improvement Value in Commercial Real Estate?
A property’s assessed value is calculated for tax purposes and comprised of improvement value and land value. When speaking of improvement value in commercial real estate, improvements include all accessible buildings and structures on that land, not necessarily that recent improvements have been made.
Can An Irrevocable Trust Do A 1031 Exchange?
Yes, an irrevocable trust can do a 1031 exchange under certain circumstances.
What Is the 10% Rule in Real Estate Investing?
The 10% rule actually consists of three rules. They are meant to be a quick and minimal way for real estate investors to check that they are getting a good deal on their investment. Having some simple-to-follow rules in your back pocket is always a helpful tactic to eliminate potential bad deals early on and with little effort.
Can I Buy a House in an Opportunity Zone and Call It an Investment?
Since the 2017 launch of the Opportunity Zone program, investors have placed their capital gains into any number of available Qualified Opportunity Funds (QOFs). Those funds, in turn, invest in projects ranging from apartment and office renovations, to ground-up retail centers.
Upleg vs Downleg in a 1031 Exchange
When undertaking a 1031 exchange, the property you are relinquishing is called the downleg, while the property you are acquiring is called the upleg. The downleg must be of equal or greater value than the upleg, and the two properties must be of like kind. This allows investors to potentially defer capital gains taxes on the sale of the downleg property.
1031 Exchange: What It Is, How It Works, and What to Consider
Navigating the world of real estate can present you with numerous opportunities that could result in a profit. However, one of the most common “necessary evils” of real estate investment is capital gains tax.
