I'm Doing A 1031 Exchange, And I Need Some Help
A 1031 exchange can be a great way to delay taxes on gains from your property's sale. Rather than handing a chunk of your gains over to the IRS, you can purchase another property from your sale's proceeds and delay your tax bill for years down the road. However, even with these advantages, a 1031 exchange may not be the right route for everyone. In this article, we'll look at a few areas to consider when deciding to do a 1031 exchange or not.
Wall Street vs. Main Street: Two Economic Downturns Requiring Different Solutions
“Wall Street” and “Main Street” became powerful metaphors during, and in the aftermath of, the Great Recession of 2007-2009. Experts suggest that the actions of large banks and investment firms (Wall Street) were responsible for that sharp economic downturn, which, in turn, negatively impacted the small businesses and individuals of Main Street.
Setting Up For Qualified Opportunity Fund Success: Knowing The Partners
According to Chinese philosopher Lao Tzu, “It is the wise man who knows what he does not know.” In other words, successful people understand that they don’t know everything. They can’t. These successful people also have experience in finding successful others who can fill in knowledge gaps. This is where fruitful partnerships come into play.
How Do State Property Taxes Work?
Not all states have income taxes, but the same can’t be said for property taxes. Every state and the District of Columbia have property taxes.
The Opportunity Zone Deal: Finding It, Funding It, Improving It
While a great deal of excitement has been generated with the Investment in Opportunity Act, its tax breaks and focus on disadvantaged communities, it’s important to remember one thing. It is, first and foremost, an investment program. Yes, it offers tax deferrals on capital gains. And yes, the vehicle will likely be useful for economic improvements within Qualified Opportunity Zones (QOZs). But before handing your capital gains to a Qualified Opportunity Fund (QOF), plenty of due diligence is required.
Location Matters: Qualified Opportunity Fund Managers And Geography
The first U.S. Qualified Opportunity Zones (QOZs) were designated in April, 2018. These days, there are more than 8,764 designated QOZs in the 50 states and five U.S. territories, including Puerto Rico.
Due Diligence And Qualified Opportunity Fund Managers
This is the first of five blogs detailing the importance of researching Quality Opportunity Fund managers, when targeting Qualified Opportunity Zones for investment. A great deal has been written about the Qualified Opportunity Zone (QOZ) program, since it was introduced as part of the Tax Cuts and Jobs Act in 2017. The program has mostly been lauded for its community improvement potential (channeling resources toward disadvantaged, lower-income areas) and investor benefits (capital gains tax deferrals).
1031 Exchange Taxable Vs. Non-Taxable Selling Expenses
When selling or purchasing an investment property in a 1031 exchange, certain expenses paid from 1031 proceeds will result in a taxable event for the investor. Routine selling expenses do not create taxable boot. Operating expenses and financing fees paid out of sales proceeds will result in taxable boot. A close examination of the closing statements for both properties (relinquished and acquired) can reveal what might be considered boot. In this article, we’ll navigate the taxability of selling expenses in a 1031 exchange.
What Is Crowdfunding, And How Is Realized Different?
Real estate crowdfunding is a topic that has garnered a good deal of attention in the past few years. Positioned as the channel that allows anyone to access an investment that previously had significant barriers to entry, crowdfunding is hailed for its ability to unlock the real estate market for the average investor. Through a simple internet transaction, investors can allocate money into real estate assets or investment funds that formerly were only available to well-heeled and well-connected investors. While Realized is similar to crowdfunding in that we also provide access to large commercial real estate investments and utilize the internet for marketing, that’s where the similarities end.
New Federal Guidelines Give Opportunity Zones More Time
Due to the COVID-19 pandemic, the government has given investors and developers an extension for deploying capital and starting projects in Opportunity Zones (OZ). Before the deadline extension, investors were required to deploy 90 percent of their capital into OZ projects. To ensure these deployments were met, the government checked where OZ-related funds were going twice each year. With recent modifications to the rules by the Treasury Department and Internal Revenue Service, the new extension allows investors to hold onto those funds until June 30, 2021.
