How Does Capital Gains Tax on Equity Work?
A Real Estate Investor’s Guide to Understanding Tax Exposure
1031 Exchange Clauses and Disclosures To Consider in a Contract
When entering a 1031 exchange for potential tax deferral benefits, it is important to work with qualified professionals and use well-drafted agreements that align with IRS requirements. Certain clauses and disclosures are commonly recommended in real estate purchase and sale contracts to help clarify the intent of the parties, support the structure of the exchange, and mitigate the risk of misunderstandings. Below, Realized 1031 outlines several contract provisions often included in like-kind exchange agreements. These clauses may help align the transaction with IRS expectations and facilitate cooperation among all involved parties. 1031 Exchange Contract: Understanding the Basics
Can I Use a 1031 Exchange To Build an ADU?
In recent years, accessory dwelling units (ADUs) have gained popularity. Investors can leverage ADUs to potentially increase rental income and property value, with variations like backyard cottages, basement apartments, and over-the-garage suites providing these advantages.
Do Delaware Statutory Trusts (DSTs) Appreciate in Value?
Delaware Statutory Trusts (DSTs) have become a popular strategy for passive real estate investing, helping accredited investors earn income without needing hands-on involvement. Those who utilize DSTs to end 1031 exchanges also enjoy tax deferrals and income preservation.
The Tax Consequences of Transferring Property to an LLC
Of the various strategies for managing personal liability and increasing flexibility in asset management, transferring real estate to a limited liability company (LLC) has been widely used by investors. While often used as a planning strategy, transferring property to an LLC may be more administratively feasible than some alternatives.
Do Lenders Do 1031 Exchanges?
Entering a 1031 exchange allows investors to defer capital gains taxes by reinvesting proceeds from the sale of investment property into like-kind replacement property. When you undergo this transaction, you’ll work with various professionals — some strictly required and others there to make the process much easier. In the second category are lenders.
Does a Widow Have to Pay Capital Gains Tax?
A Guide for Investment Property Owners Navigating Loss and Tax Liabilities
Does a 1031 Exchange Require an Appraisal?
A 1031 exchange is a tax-advantage strategy that allows you to swap properties and defer capital gains tax payments. Given this structure, it’s unsurprising that some investors have asked the question: Does a 1031 exchange require an appraisal?
What Is a 1031 Exchange Title Company?
Entering a 1031 exchange involves working with various professionals, some to help facilitate a smoother exchange and some to help ensure compliance with the IRS rules. Among the many entities you’ll encounter will be a title company experienced in 1031 exchanges. The professionals here play a distinct role in documenting the transaction to help support a successful exchange. Below, Realized 1031 has shared a guide discussing the role of the title company, how it compares to a qualified intermediary, and how to choose one based on your needs. Keep reading to learn more.
