A list of our top 10 most viewed articles from 2017.
10. In a 1031 Exchange? You May Need to File a Tax Extension
Are you currently in a 1031 exchange or contemplating beginning an exchange before the end of the year? If you sold or are planning to sell investment property between October 17, 2017 and December 31, 2017, you should plan on filing IRS Form 4868 - Application for Automatic Extension of Time to File U.S. Individual Income Tax Return on or before April 15, 2018.
9. The End of Non-Real Estate 1031 Exchanges?
Our previous blogs on 1031 Exchanges focus mostly on real property, or real estate. However, the Internal Revenue Code (IRC) 1031 also covers what is dubbed “personal property.” In other words, property held for investment and/or business purposes, but that isn’t real estate, is also eligible for 1031 exchanges - at least for the current time.
8. The Risks of Investing in Single Tenant NNN Properties
“Better safe than sorry” is an adage that often gets overlooked in the world of real estate investing. When evaluating a potential property, calculating the expected return is relatively easy, but understanding the associated risks is really difficult. What’s a real estate investor with a lower tolerance for risk to do?
7. The Other DST – Deferred Sales Trust
We’ve talked before about 1031 Exchanges and Delaware Statutory Trusts (DSTs). Delaware Statutory Trusts can be attractive investments, especially if you want to own real estate, but don’t want the hands-on hassle. The DST can also provide a terrific tax-deferral mechanism if you decide to exchange into it from a real estate asset sale.
6. How You Complete a 1031 Exchange in 10 Easy Steps
A 1031 “like-kind” exchange is widely used by real estate investors to create and preserve wealth. In simple terms, Internal Revenue Code §1031 allows real estate investors to defer capital gains taxes on the profits from selling an investment property, provided the sale proceeds are “exchanged” (reinvested) into another “like-kind” property (investment real estate).
5. What is a Partial 1031 Exchange?
Often, 1031 investors would like to set aside a portion of the money from their property sale. Perhaps they have college tuition or an upcoming wedding to consider. This begs the question: Is it possible to keep a portion of a property sale’s proceeds while still deferring the majority of taxes with a 1031 exchange?
4. The Tax Benefits of Real Estate Investing
The Land Act of 1820 was one of America’s first solutions for motivating people to buy land in “The West.” By reducing the minimum price and size of a standard tract, the government made land ownership throughout the country accessible for average Americans—not just the wealthy.
3. You Can 1031 Exchange Into A REIT, Here's How
One question we’ve been asked a lot lately by 1031 exchange investors is whether it’s possible to do a 1031 exchange into a Real Estate Investment Trust, or REIT. The short answer is: “you can do a 1031 exchange into a REIT if you follow a few steps.”
2. Disadvantages of Delaware Statutory Trust (DST) 1031 Exchange Replacement Properties
Delaware Statutory Trusts or DSTs are an alternative for 1031 exchange investors seeking replacement properties offering the potential for monthly income and diversification without any on-going landlord duties. Since 2004, when the IRS approved the Delaware Statutory Trust for 1031 exchange-qualified co-ownership, investors have purchased approximately $35 billion worth of real estate/replacement properties.
1. You Can Do a 1031 Exchange on a Primary Residence - Here's How
One of the biggest questions we get is: “can I use my primary residence in a 1031 tax-deferred exchange?” Well, maybe not everyone, but certainly some. But, can you? The IRS’ short answer is a stern no. However, as is usually the case under the Internal Revenue Code, there are exceptions.