What is the Difference Between Tenants by the Entirety (TBE) and Tenants in Common (TIC)?
There are various ways in which individuals can hold shared ownership of a property. Two common forms of joint ownership are Tenants by the Entirety (TBE) and Tenants in Common (TIC). While both arrangements involve multiple individuals owning a property, they differ in several key aspects.
When Do I File Form 8824?
IRS Form 8824 is a form submitted to the IRS when a like-kind exchange takes place in real estate investing. A like-kind exchange, also referred to as a 1031 exchange, is when an investor exchanges one investment property for another similar property, potentially deferring capital gains taxes under section 1031 of the IRS code.
The Benefits of Investing in a Delaware Statutory Trust with Other Investors
DSTs (Delaware Statutory Trusts) provide investors an avenue for 1031 exchanging into investment properties. It can be difficult to find a viable 1031 exchange property. Because DSTs are 1031 exchange eligible, they have a fairly large pool of potential properties to exchange into.
What is the Minimum Investment In a Qualified Opportunity Zone Fund?
Qualified Opportunity Zones (QOZs) were established in 2017 to encourage investments in distressed or low-income areas by offering potential tax benefits to investors. A Qualified Opportunity Zone Fund is organized for investing in QOZ properties.
Can You 1031 Exchange Forever?
A 1031 exchange is a great vehicle for deferring gains on the sale of a property. The tax bill can be quite burdensome if the property being sold has appreciated markedly. Investors can potentially get around this problem by utilizing a 1031 exchange, pushing their taxes due on the gain out into the future.
Why Do Companies Do Net Leases?
A net lease has benefits for both tenants and landlords. These leases come in different forms and are signified by their number of “N”s, such as NNN, which means triple net lease.
Failed 1031 Exchange Installment Sales: What You Need to Consider
There are a lot of moving parts and pieces in even the simplest 1031 exchange, and each aspect of the exchange must adhere to stringent Internal Revenue Service requirements and guidelines, without exception.
Can You Do a 1031 Exchange on a Short-Term Rental Property?
The purpose of a 1031 exchange is to defer the obligation to pay capital gains tax when you sell an investment property. The IRS has explicit rules governing these transactions, including tight timelines and requiring the taxpayer to use a Qualified Intermediary to oversee the financial and reporting aspects.
What Happens If You Don't Pay Your Deferred Taxes?
Tax management is an essential component of financial planning for many taxpayers. There are several possible reasons to favor deferring taxes and more than one tool for doing so. Taxpayers may seek to defer income taxes or capital gains taxes. In each case, deferral does not equate to elimination, although it is possible to legally eradicate capital gains taxes in some cases.
Who Should File Form 8824?
Any taxpayer who completes a 1031 exchange during the tax year must file IRS Form 8824 as part of their tax return. The form reports the amount of gain the taxpayer is deferring by employing the 1031 exchange.
