Can You 1031 Out of a DST?
DSTs (Delaware Statutory Trusts) have become popular vehicles for 1031 exchanging into. Investors only need to find the right DST rather than the right property, which can be difficult under strict time constraints.
Can Rental Losses Exceed Rental Income?
Anyone who runs a business knows that certain expenses can be deducted from income, thereby reducing taxable income. However, things can get a bit murky if the business incurs an overall loss. This is especially true for those managing rentals. Let’s break down what happens when a real estate business has a loss for the year.
How Do You Treat Interest on An LLC Sale?
When a member of an LLC decides it's time to move on to another opportunity, they may want to sell their interest in the LLC. Selling LLC interest is like selling other capital assets. If the asset is sold above its cost basis, it will generate a profit. The same is true for LLC interest.
1031 Exchange 5-Year Rule: What You Need to Know
1031 exchanges offer a potentially valuable tool for investors to defer payment of capital gains taxes when selling appreciated assets, as long as they reinvest the proceeds into a "like-kind" asset. Successfully executing a 1031 exchange to dispose of an appreciated property and replace it with another can be a financial advantage for investors.
UPREITS: Transforming Your Real Estate Into a Liquid Asset
When it comes to investing, real estate is an illiquid asset. There are a few reasons for this, which include difficulty of sale, access to capital, and supply and demand fundamentals. Specifically, if you need cash immediately, selling investment real estate might not be your first, or best, choice.
What are the Responsibilities and Duties of DST Trustees and Beneficiaries
The Delaware Statutory Trust (DST) is a passive investment structure that offers investors partial ownership of real estate properties. In some instances, this investment type can provide certain benefits to investors, including access to certain real estate investment types, potential portfolio diversification, and possible cash flow.
Can One Tenant Leave a Joint Tenancy?
Joint tenancy is a type of property ownership where two or more co-owners share equal ownership. In some cases, one owner might have a situation where they need to leave the joint tenancy arrangement. The ability to do so depends on the terms of the agreement and the consent of the other co-owners.
Can You Do Both Commercial and Residential Real Estate?
Real estate is a vast industry with several sectors, commercial and residential being two of the largest. Both are popular avenues for real estate investors, and while it is possible to invest in both, it is important to understand the differences in the characteristics, investment considerations, and potential returns.
How to Fill Out Form 6252
Form 6252 is used for installment sales. An installment sale lets investors sell their property and receive payments over time. The advantage is that the seller is only taxed on what they receive. This allows the seller to pay a lower upfront tax bill and spread the rest out over time. Let’s go over what’s needed to fill out Form 6252.
Can You Do a 1031 Exchange with Syndication?
One of the attractions of investing in real estate is—of course—the profit potential. The earnings may come from income, such as tenant rental payments, and from asset appreciation. The increase in value is a capital gain, and the IRS taxes those gains when the investor realizes them. In most cases, if you sell an investment property for more than its cost basis, you will owe taxes on the difference—that's the gain.
