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The Tax Consequences of Transferring Property to an LLC
Of the various strategies for managing personal liability and increasing flexibility in asset management, transferring real estate to a limited liability company (LLC) has been widely used by investors. While often used as a planning strategy, transferring property to an LLC may be more administratively feasible than some alternatives.
Do Lenders Do 1031 Exchanges?
Entering a 1031 exchange allows investors to defer capital gains taxes by reinvesting proceeds from the sale of investment property into like-kind replacement property. When you undergo this transaction, you’ll work with various professionals — some strictly required and others there to make the process much easier. In the second category are lenders.
Does a Widow Have to Pay Capital Gains Tax?
A Guide for Investment Property Owners Navigating Loss and Tax Liabilities
Does a 1031 Exchange Require an Appraisal?
A 1031 exchange is a tax-advantage strategy that allows you to swap properties and defer capital gains tax payments. Given this structure, it’s unsurprising that some investors have asked the question: Does a 1031 exchange require an appraisal?
What Is a 1031 Exchange Title Company?
Entering a 1031 exchange involves working with various professionals, some to help facilitate a smoother exchange and some to help ensure compliance with the IRS rules. Among the many entities you’ll encounter will be a title company experienced in 1031 exchanges. The professionals here play a distinct role in documenting the transaction to help support a successful exchange. Below, Realized 1031 has shared a guide discussing the role of the title company, how it compares to a qualified intermediary, and how to choose one based on your needs. Keep reading to learn more.
Section 1031 Exchange Basics To Considerlog
A 1031 exchange is a commonly used tax-deferral strategy that allows real estate investors to defer capital gains taxes by reinvesting in other qualifying investment properties. However, this process may be complex, and you may feel overwhelmed by the various rules set by the IRS. By focusing on the core provisions—such as property identification timelines, use of a qualified intermediary, and intent to hold for investment—you can better navigate a traditional exchange structure. Realized 1031 has shared a blog post diving back into these basics. Keep reading to learn more.
1031 Exchange Holding Period: What To Consider Blog Post Title Here...
A 1031 exchange is a popular tax-deferral strategy that allows investors to swap like-kind properties to defer payment for capital gains taxes. In order to avoid abuse and maintain the integrity of these transactions, many rules exist that investors have to comply with. A widely followed guideline that is encouraged is the 1031 exchange holding period. How does the holding period work and how long is the timeframe?
Step-up in Basis: What It Is and How It Works for Inherited Assets
When a loved one passes away and their heirs inherit certain assets, they may receive a step-up in basis when transferred. When a person receives real estate, stocks, or other types of investment, the step-up in basis resets the asset’s fair market value to the date of the original owner’s death. Thanks to this tax rule, beneficiaries may reduce or even eliminate capital gains taxes that would otherwise be realized if the asset were sold.
What Happens to a 1031 DST When the Owner Passes Away
Investing in a Delaware Statutory Trust has become appealing to many investors, especially for estate planning. After entering the trust through a 1031 Exchange, investors may enjoy tax-deferral benefits as well as the potential for passive income. You’re only required to pay capital gains taxes upon the sale of the DST. However, what happens to a 1031 DST when the owner passes away? Who inherits the fractional interests, and what are the tax implications? Realized 1031 has shared a guide to answer these questions.
