How Many Times Can You Do A 1031 Exchange?
While timing is important in the 1031 exchange process, the taxpayer’s intent is everything. According to Section 1031 of the U.S. Internal Revenue Code, a 1031 tax-deferred exchange has a sequence of actions that must be completed within a strict time frame to qualify. Outside of the 45-day identification period and the 180-day exchange period of a property, which run concurrently and start counting when the sale of your property closes, there is no law regarding the minimum or maximum time of ownership, the number of times you can do a 1031 exchange, or the frequency.
How To Report a 1031 Exchange on Your Tax Return
You’ve successfully completed a 1031 like-kind exchange and deferred your capital gains tax on the sale of your former investment property - congratulations! The IRS still wants a report of every single exchange where you may have deferred your tax liability.
Can I Move My IRA Into An Opportunity Fund?
The Employee Retirement Income Security Act of 1974 (ERISA) introduced the individual retirement account. And, the IRA became popular with help from the Economic Recovery Tax Act of 1981. These days, IRAs are positioned to help individuals save for retirement, with tax-deferral advantages.
Active vs. Passive Investing - The Key Differences To Know
There are two different ways to generate income — active and passive. One is a time for dollars trade-off while the other is able to generate income without your direct involvement. There are many differences between these two types of income, and choosing one over the other doesn’t mean one is better than the other. Sometimes the choice is a personal preference, and sometimes it's out of necessity. In this article, we’ll go through the differences between these two types of income.
Will The 2020 Pandemic Impact Construction?
In the U.S., 2020 has brought a broad-based decline in commercial real estate due to COVID-19. Any business deemed non-essential has taken the brunt of the slide. Office leasing, retail, and other non-essential companies have seen their revenues dry up — and the astronomical drop in travel has led to the decline in hotels and other hospitality properties. But one area that hasn't completely stopped all activity is construction starts.
Qualified Opportunity Funds vs. Qualified Opportunity Zone Businesses
While Qualified Opportunity Funds (QOFs) and Qualified Opportunity Zone Businesses (QOZBs) are an essential part of the Opportunity Zone program, their purposes are quite different. QOFs are in place to fund projects in federally designated QOFs, while QOZBs are directly engaged in trade and activity within these locales.
Legacy Planning For Generational Wealth Transfers
Legacy planning can be essential to help manage the loss of assets from one generation to the next. Investigating strategies for generational wealth transfers is the first step in planning the protection of your wealth for future generations. If your goal is to protect your bequests, while simultaneously affording your heirs the freedom to manage their investment property according to their individual preferences, you need to plan. Planning now can provide your heirs with the flexibility to form their investment strategies while you can still offer guidance and simultaneously reap the advantage of avoiding unnecessary estate taxes. Since the term legacy planning implies the inclusion of value-driven elements, it is often considered to be broader than estate planning.
Is A Long-Term Lease Permitted For An Opportunity Zone Project?
The Opportunity Zone Program was created to direct much-needed capital to distressed areas by offering tax deferral incentives to investors. The program is finite with many deadlines: the statutory expiration of Qualified Opportunity Zones’ (QOZ) designations is December 31, 2028. Additionally, 2028 will be the first year during which early QOZ investments can be sold, allowing investors to qualify for their 10-year gain exclusion.
I'm Selling My Business With Real Estate Assets
Selling a business that has substantial real estate holdings offers you the opportunity to consider strategies for satisfying your risk tolerance and diversification preferences, as well as managing tax implications. The first decision to make is whether you want to retain the real estate or sell it as part of the business deal. A third option is a third-party sale and leaseback to the business buyer, but that isn’t germane to this discussion. You will need to weigh several factors in making this decision, including:
Rent Control Regulation: How It Impacts Real Estate Investors
Rent control regulation has become a hot topic of discussion. As it needs to be - housing costs are an election issue in the United States for the first time in years. Rent regulation refers to the establishment of a set percentage by which landlords can increase the rent during the duration of a tenancy. The percentage can be determined by inflation or the cost of living in that area or determined by local regulators. While calls for a federal response have taken precedence, rent control regulations have state and city-specific policies with varying laws. Most states don’t have any laws regarding rent regulation, and some even prohibit rent caps. There are two sides to this coin, but how do these regulations impact real estate investors?
