The Realized Team’s Picks
The Tax Benefits of Combining UPREITs and Estate Planning
If you’re contemplating retirement or want to transfer your wealth to future generations, estate planning is integral to your long-term strategy. And if investment real estate is part of that wealth generation, contributing your property to an Umbrella Partnership Real Estate Investment Trust or UPREIT can help you achieve current investment objectives while passing along potential tax advantages to your heirs.
What Are The Disadvantages Of Triple Net Lease (NNN) Investments?
Triple net lease (NNN) properties can be an attractive addition to your real estate investment portfolio. Because the tenant pays for property taxes, insurance, and maintenance under an NNN agreement, this real estate can generate steady income streams without headaches related to property management.
Understanding the Advantages and Drawbacks of a Tax-Deferred Exchange
A 1031 exchange can be helpful if you’re a real estate investor. When conducted properly, the process helps defer capital gains taxes and depreciation recapture on the sale of investment or business-use real estate. This can mean more immediate liquidity for the potential for long-term wealth creation.
What Isn’t Eligible for a 1031 Exchange?
26 U.S. Code § 1031—“Exchange of Real Property Held for Productive Use or Investment”—can help delay capital gains tax payments from selling your real estate. The 1031 exchange, also called the “like-kind” exchange, lets you invest those gains into other real estate of greater or equal value.
Do You Have To Pay Capital Gains Tax Immediately?
Capital gains occur when you sell your investment real estate at a price over what you paid. While generating profit from asset sales is great, you must also pay taxes on any recognized gain. You don’t have to pay taxes immediately—generally, you’ll pay when you file your annual tax return for the year you sell your property.
UPREITS, Real Estate, and Natural Disasters
Natural disasters are in the news. Hurricane-generated massive floods destroyed inland towns, while snow and ice storms wreaked havoc on Sun Belt states. At the same time, wildfires in Los Angeles have meant billions in losses.
What Are the Pros and Cons of a 721 Exchange?
Real estate investors have various options when deferring capital gains taxes and depreciation recapture on investment property sales. One such method is a 721 exchange, or Umbrella Partnership Real Estate Investment Trust (UPREIT). When used correctly, the UPREIT process can help defer tax liability from property that appreciates.
Reverse 1031 Exchange Lender: Understanding Their Role In Real Estate Transactions
The 1031 exchange is a tax deferral strategy enabling real estate investors to defer capital gains tax and depreciation recapture payments. A like-kind exchange comes in various formats, including a reverse 1031 exchange. If you’re contemplating a reverse exchange, you might need financial assistance. As such, a reverse 1031 exchange lender may be important for the success of your transaction.
How a 1031 Exchange Works With Crowdfunding
You might be a real estate investor interested in using a 1031 Exchange to potentially defer capital gains taxes and depreciation recapture on property you want to sell. You might find a replacement property that meets your investment parameters through a crowdfunding platform.
Can You Do A 1031 Exchange On A Short-Term Capital Gain?
The 26 U.S. Code § 1031—“Exchange of Real Property Held for Productive Use or Investment”—can help defer payment on taxes generated from your real estate sale. As long as you stay with the IRS’ guidelines and direct the gains of that sale into a like-kind replacement property, you can postpone payment of capital gains and depreciation recapture taxes.
