Can You Borrow Against a 1031 Exchange Property?

One of the potential benefits of direct real estate ownership is the ability to “borrow” against it. This is known as a “cash-out refinance,” and it involves applying for a new loan to pay off the property’s current loan, while obtaining extra cash based on that property’s equity. 

Jun 6, 2023

What Triggers Depreciation Recapture?

Investment property owners are likely quite familiar with depreciation, since it allows them to deduct certain costs associated with acquiring and improving income-producing real estate, which can lead to lower annual taxable income. 

Jun 5, 2023

How to Help Your Clients Diversify Their Real Estate Holdings

Real estate diversification is about far more than choosing different locations and sectors to invest in. The topic is extremely deep. Location and sector-based investing are only skimming the surface. When discussing diversification with your clients, the following lists should be a minimum: Markets and Demographics Sectors Public vs. Private Deals Diversification Through Single Funds and Syndications Equity vs. Debt Deals Factoring In Economic and Demographic Projections

Jun 5, 2023

Do You Have to Pay Capital Gains on Livestock?

We’ve written plenty of articles about capital gains and capital gains taxes on the sale of real estate property. But one question that comes up frequently is whether sales of other property types can trigger capital gains taxes. When it comes to farming, for example, does a farmer who sells livestock have to pay taxes on the gain from that sale? 

Jun 4, 2023

How Do You Calculate Gross Profit Using Installment Sales?

In previous blogs, we’ve discussed ways to defer capital gains taxes. A couple of examples are using the 1031 exchange or tax-loss harvesting. 

Jun 3, 2023

Can You Change Title After a 1031 Exchange?

The 1031 exchange involves the exchange of relinquished real estate into replacement real estate, with the goal of potentially deferring taxes on capital gains. But rules need to be followed when completing a like-kind exchange to ensure that it’s valid to the IRS. One of these rules involves ownership of both the relinquished and replacement properties. 

Jun 2, 2023

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