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.
How Much Tax Do You Pay When You Sell a Commercial Property?
For many property owners, the amount of tax owed after a sale is a major concern. Knowing the value helps you plan for the potential tax implications and make informed decisions regarding reinvestment or other ventures. How much tax do you pay when you sell a commercial property? There are a few factors to keep in mind to get an accurate estimate before you commit to a sale. Realized 1031 has shared an informative guide to help you understand these considerations. Keep reading to learn more.
