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.
How Many Years Can Capital Gains Losses Be Carried Forward?
When an investor experiences a capital loss, they net it against capital gains. If the net transaction is still a loss, the investor may be able to use the loss toward future years.
Why UPREITs are Becoming More Popular with Investors
A 1031 exchange has tax deferral benefits for those investors who are able to find a suitable replacement property. However, investors need to basically run the gauntlet as restrictions and deadlines must be met for the 1031 exchange to be performed successfully.
How Many Joint Tenants Can You Have?
Joint tenancy is a common type of property ownership where two or more individuals share equal ownership rights to a property. Usually there is no limit on the number of joint tenants that can co-own a property, but it ultimately depends on various factors and legal requirements.
Delayed 1031 Exchange Time Limits: What You Need to Consider
Many investors rely on 26 U.S. Code § 1031 – “Exchange of Real Property Held for Productive Use or Investment” to potentially defer capital gains and depreciation recapture taxes triggered by the sale of real estate.
How to Get Cash Flow from Real Estate
Investing in rental real estate has the potential to provide many benefits, including tax write-offs, portfolio diversification, and passive income.
Can I Buy a Property Overseas with a 1031 Exchange?
A 1031 exchange is a tool taxpayers can use to defer their obligation to pay capital gains taxes when they sell an investment property and reinvest the proceeds. 1031 refers to the relevant section of the tax code, and exchange refers to the swap from one property to another. Regarding a 1031 exchange, it's crucial to understand that the rules surrounding domestic and foreign properties are distinct. While an investor can conduct a like-kind exchange of a U.S. property for another U.S. property, or a foreign property for another foreign property, it's important to note that exchanging a U.S. property for a foreign property is not permissible under Section 1031 of the Internal Revenue Code. Therefore, it's paramount that investors carefully consider their 1031 exchange strategies with this in mind to maintain tax deferment benefits.
UPREITs: The Mechanics of Conversion from Real Estate to Shares
A 721 UPREIT exchange (also called a 721 transfer) allows investors to exchange their real estate property for operating partnership (OP) units in a REIT. As long as the OP units are held, taxable gains on the property are deferred. When the time comes, OP units can be exchanged for REIT shares. This terminates the tax deferment and creates a taxable event. We’ll walk through how the conversion process works.
What are Grantor and Non-Grantor Trusts?
Trusts are an essential topic in financial and estate planning. Numerous varieties exist, which can cloud the discussion. It’s helpful to understand the similarities and differences between types, starting with grantor and non-grantor trusts.
Can One Tenant End a Joint Tenancy?
Joint tenancy is one of the common structures that people can use to own property together. The number of people who can share a joint tenancy is technically unlimited, although the most common number of owners in a joint tenancy is two. Married or unmarried couples holding property together often choose this ownership structure. It is also attractive to small groups of business associates or friends sharing equal access to property.
