Are Opportunity Zone Funds Still Available?
Qualified Opportunity Zones came to be as part of the 2017 Tax Cuts and Jobs Act (TCJA). Some key elements of the TCJA are:
Can My Lawyer Be a Qualified Intermediary (QI) for a 1031 Exchange?
Using a 1031 exchange to defer capital gains taxes when you sell an investment property and reinvest the proceeds can effectively leverage your investment options. For example, suppose you have a real estate asset you purchased for $400,000 several years ago, and now you can sell the property for $600,000. In a standard sale, you would owe capital gains taxes on the $200,000 gain, reducing how much you could reinvest. If you execute the transaction as a 1031 exchange, you can reinvest the entire $600,000. The tax on the capital gain is deferred, not eliminated.
When is an UPREIT Taxable?
Digging into what triggers taxes on an UPREIT (Umbrella Partnership Real Estate Investment Trust) is best approached with a foundation of understanding of the UPREIT and the REIT itself.
1031 Improvement Exchange Rules: What You Need to Consider
A 1031 improvement exchange is like a traditional 1031 exchange with improvements added to the exchange. With a traditional 1031 exchange, investors will find a property of at least equal value to exchange. These properties are often turn-key and don’t require big improvements.
What is a Tenants In Common (TIC) Syndication?
Investors who want to 1031 exchange into a syndication will immediately encounter a few roadblocks. Doing a 1031 exchange into a syndication is not possible since the syndication (in most cases) is considered a security. The exchanger is trying to 1031 exchange from real property into a passive investment. Passive investments are securities. Trying to exchange from real property to a security does not meet the “like-kind” 1031 exchange requirement.
Can You Lose Money Investing in a DST?
DST (Delaware Statutory Trust) investments are attractive to many people interested in real estate. The reasons for DST's popularity are numerous and include these:
What Happens at the End of a Delaware Statutory Trust (DST)?
Delaware Statutory Trusts (DSTs) are often attractive to investors who want access to significant commercial real estate (CRE) assets similar to those institutional investors own. A DST is created by a sponsor, who identifies and acquires the targeted assets. The sponsor then markets the offering to investors and contracts with a master tenant to manage the property.
How Much Can You Inherit Without Paying Taxes?
Every so often, Congress introduces bills to reduce or repeal what are known as “death taxes.” Eliminating these levies tends to create controversy; one side argues that the estates of high net-worth descendants should pay their fair share in taxes. The other side argues that such a tax is unfair to those left behind.
How UPREITs Can Potentially Benefit Property Owners
Real estate investors are always searching for ways to save on taxes. One of the biggest tax events a real estate investor will face is when their property is sold for a profit. To mitigate tax consequences from the sale of property, investors will often use a 1031 exchange. However, a 1031 exchange isn’t the only tool available for tax mitigation. Its cousin, the 721 exchange, provides a few alternative benefits to investors.
