How Many Properties Can Be Relinquished in a 1031 Exchange?
For an investor contemplating the prospect of a 1031 exchange, the rules are complex, but the potential rewards are attractive. For example, if you are considering the sale of a real estate asset but prefer not to pay capital gains taxes on the increased value presently, a 1031 exchange may be an option to evaluate. Among the considerations are the role a particular asset plays in your overall investment strategy, the potential for continued appreciation, the alternatives available, and individual goals not currently being optimized.
How Can I Reduce Tax Liabilities?
There are many strategies you can use to reduce your tax liabilities, which is the money you’ll have to pay to the Internal Revenue Service each tax year.
Are Contiguous Census Tracts Available for Qualified Opportunity Zones?
The Tax Cuts and Jobs Act of 2017 contained many new tax incentives designed to spur long-term investments, especially in impoverished and distressed neighborhoods that historically had been overlooked by investors and developers.
What Is a Class A, B, or C Property?
Real estate investments come in many categories, including sectors like retail, office, healthcare, and hospitality, and asset class, including A, B, C, and even D. What determines a property’s class may include age, location, amenities, finishes, and rent.
What Are the Rules for 1031 Exchange Refinancing?
For many real estate investors, the main goal of completing a 1031 exchange is to swap the equity in one property for an asset of equal or greater value while deferring capital gains taxes generated from the sale of the relinquished property.
What Is a Charitable Remainder Trust and How Does it Work?
Trusts are often complex, and there are many types. Therefore, it's always a good idea to have expert assistance when establishing one, especially if the trust is irrevocable. According to the Business Dictionary, the definition of a trust is "a legal entity created by the trustor through which the trustee holds the right to manage the trustor's assets or property for the benefit of the beneficiary." The main types of trusts are living, testamentary, revocable, irrevocable, funded, and unfunded. Within each of those, there are further variations.
What Is After-Tax Cash Flow and How Do You Calculate It?
Real estate investing provides a number of tax advantages for investors. This is because not all expenses impact a real estate investment’s cash flow. An investor can show a loss on their investment but still have positive cash flow. That is the difference between pre-tax and after-tax cash flow. Let’s see how it works.
What Is Operational Risk in Real Estate?
We can define risk as potential uncertainty and/or financial loss when it comes to investment decisions or activities. Evaluating risk in real estate can be complex and investors must consider many unknowns which could potentially lower returns and value. A common risk that comes with real estate ownership is operational risk.
What Is Private Credit?
As a subset of alternative credit, private credit can also be referred to as private lending, direct lending, or non-bank lending. It can be described as an asset class where the debt is not issued or traded on the public markets. They can be comprised of potentially higher-yielding, illiquid investment opportunities ranging from senior secured debt with income-like characteristics to distressed debt with equity-like risk and returns.
