The Realized Team’s Picks
How To Successfully Do a 1031 Exchange Into a Mixed-use Property
When it comes to 1031 exchanges, many investors tend to focus on assets that have a singular use, no matter what sector. This could mean finishing the exchange into a multifamily home, a shopping strip, or a warehousing facility. However, mixed-use properties have their own rewards.
How Capital Gains Affect Inherited Vacation Homes
Inheriting a vacation home can be a mixed blessing. On one hand, it provides you with a cherished family asset, perhaps laden with fond memories. On the other hand, it comes with its share of financial considerations, particularly concerning capital gains taxes. Understanding how these taxes impact inherited properties can help you make informed decisions about whether to keep, sell, or rent out the property.
Interest Rate Risk: How Rising Rates Impact Real Estate Investments
For investment property owners, understanding the dynamics of interest rate risk is crucial. As interest rates rise, the real estate landscape can change dramatically, presenting both challenges and opportunities. Let's explore how these rising rates affect property investments and what strategies can help mitigate the associated risks.
Understanding Short-Term vs. Long-Term Capital Gains in Real Estate
The whole point of investing is to make your money work for you. As your assets earn or appreciate, they increase in value. When you sell these assets, like real estate, the profit you make is called capital gains. This profit is a type of income, so of course it will be taxed. For the purposes of taxation, capital gains are separated into two categories: short-term and long-term capital gains.
Do You Have To Pay Capital Gains Tax When You Gift Property?
The act of gifting is a generous and meaningful practice that many investors or property owners engage in. Some gift for estate planning purposes, while others do it to pass down family businesses or homes to the next generation. However, this act does prompt givers and receivers to ask questions, such as whether or not capital gains taxes apply when gifting a real estate asset.
How To Avoid Capital Gains When Selling Land
Owning land is a great investment, with high potential for appreciation and generally good profit margins. However, investors must take into account capital gains when selling land. In particular, you must consider how the realized profits result in tax liability. While taxes are not avoidable in most cases, there are strategies you can use to defer. Below, Realized 1031 shares how to avoid capital gains when selling land.
Combining UPREIT and DST Structures: Strategic Considerations
Real estate investors are always seeking strategies that can help optimize their gains, diversify their portfolios, and manage their tax liability. Two approaches that offer similar benefits have emerged in recent times: Delaware Statutory Trusts (DSTs) and umbrella partnership real estate investment trusts (UPREITs). These vehicles have very similar benefits and structures, making them ideal for investors who want a streamlined path from one property to another.
How UPREITs Are Adapting to Changing Real Estate Market Trends
New technology, changing needs, and more selective demographics are causing upheavals in the real estate market. Umbrella partnership real estate investment trust (UPREIT) investors should be aware of the various strategies REITs are using as a response to these new developments. This way, investors can assess which UPREITs are best positioned for success as the landscape changes.
Using UPREITs for Estate Planning and Wealth Transfer
Investors have numerous options to consider when planning how their legacy will be passed down to their heirs. Of course, each individual has different priorities, such as tax efficiency, streamlined transfers, or wealth preservation. There is one approach that can address all these needs: the umbrella partnership real estate investment trusts (UPREIT). These structures allow property owners to exchange real estate holdings for operating partnership (OP) units, offering unique advantages for various types of investors.
What Is an UPREIT and How Does It Differ From Traditional REITs?
Investors have plenty of choices when it comes to the type of investment approach they take, particularly in the real estate sector. However, various options offer similar benefits, and some are so closely structured that confusion arises. Things can get complicated! Real estate investment trusts (REITs) and umbrella partnership real estate investment trusts (UPREITs) are two prominent examples.
