1031 Exchange Partnership Interests - What You Need to Know
A 1031 exchange is a way of deferring capital gains taxes on the sale of real estate. Taxpayers who sell property held for investment purposes can defer the taxes by directing the proceeds from the sale into "like-kind" property of the same or greater value, also to be used for investment. In practice, almost any investment property has been considered “like-kind” by the IRS.
Annual Depreciation Allowance: What You Need to Know
Owning real estate can provide investors with a host of tax benefits, but none may be more important than your investment property’s annual depreciation allowance.
Can You Do a 1031 Exchange on Inventory?
Ever since the 1031 exchange was introduced through the Revenue Act of 1921, swapping like-kind property held for investment or trade has been successfully used to help defer capital gains taxes. But over the years, questions have arisen about property that is eligible for exchange.
What Is a Farmland REIT?
Real Estate Investment Trusts, commonly referred to as REITs, are companies that own and operate or finance real estate assets, with the goal of earning income for their investors. Many REITs are publicly bought and sold on stock exchanges and are therefore liquid investments much like mutual funds. Ownership of a REIT allows an investor to hold a fractional share of a commercial real estate portfolio that may include multi-family housing, hospitality property, retail assets, self-storage centers, industrial facilities, healthcare buildings, and more.
REITs and Direct Purchase of Property - What are the Advantages and Disadvantages
Investors may acquire real estate in the pursuit of income and capital appreciation. In addition, real estate may offer the opportunity to earn revenue through rent paid by tenants and increases in the asset's value. However, some investors may prefer not to be actively involved with the day-to-day responsibilities that direct ownership requires. Those individuals may instead pursue the potential benefits of real estate by investing in a Real Estate Investment Trust or REIT.
What Is the Investment Time Horizon?
One straightforward way to look at the question of an investment time horizon is: when do I need this money? Another way to posit the question is: how long do I expect to hold this investment? The response could be the same or different. In fact, the answer may be different every time you ask yourself the question, depending on the goal you are pursuing, the age when you ask it, and the circumstances at that moment in time. Your portfolio will likely contain investments with various time horizons from short to long.
Are Low Interest Rates Good for REITs?
While low interest rates are typically thought to be an advantage for buying real estate, more than one factor plays a role in the success of any investment, including REITs, or Real Estate Investment Trusts.
What Is a Depreciation Schedule for Rental Property and How Are They Determined?
Real estate investing can provide a number of benefits to investors. One of these potential benefits is annual depreciation. The IRS allows investors to deduct depreciation as an expense once a property is placed into service. Because no asset lasts forever, depreciation is meant to capture the wear and tear of the property on an annual basis.
Can an LLC Be a Qualified Opportunity Fund?
Here are a few basic facts about the Opportunity Zone program, which came into being as part of the Tax Cuts and Jobs Act of 2017.
Can You Purchase a 1031 Exchange Property with Seller Refinancing?
Seller Refinancing and 1031 Exchanges The 26 U.S. Code § 1031 is relatively straightforward. Identified as “Exchange of Real Property Held for Productive Use or Investment,” the process focuses on disposing of an owned piece of real estate (i.e., the "relinquished” property) and swapping the proceeds into another real estate asset (i.e., the “replacement” property).
