How to do a 1031 Exchange in California
The 1031 exchange is a federal provision of tax law that allows investors to defer the capital gains taxes they would otherwise owe when they sell an investment asset. The term “1031 exchange” refers to Section 1031 of the Internal Revenue Code and is also called a “like-kind” exchange of property. While earlier interpretations of the section allowed investors to defer capital gains taxes on a range of investment assets, Congress restricted the definition to investment real estate in 2017.
At What Age is Social Security Not Taxable?
Social Security retirement benefits are a substantial source of income for many retirees. Payroll deductions fund Social Security and Medicare benefits. Suppose an employer pays you. In that case, you and the employer each pay 6.2 percent of your income, up to a maximum of $160,200 (in 2023—this amount is regularly updated). If you are self-employed, you must pay the employee and employer share, totaling 12.4 percent of income.
What is Opportunistic Real Estate?
Real estate investments are often considered safer than some other types, such as stocks. But there are investments with higher and lower risks within the real estate category. Typically, higher risks are correlated with potentially higher returns, so investors must evaluate their risk appetite when pursuing specific opportunities.
How To Declare a 1031 Exchange
How does one start a 1031 exchange? And once it is started, what should an investor expect throughout the process?
How Can I Structure a Real Estate Partnership?
Going into a real estate deal with a partner can have many benefits. But the fine print in the partnership agreement should contain all of the right language for when things go wrong or not as expected. Creating the right partnership structure is key to its survival and longevity. Let’s go through what you need to be aware of when structuring a real estate partnership.
What Are The Tax Implications of UPREITs?
What is an UPREIT? The UP in UPREIT means umbrella partnership. These REITs are often used in a 721 transfer (or 721 UPREIT exchange), which is similar to a 1031 exchange.
How Long Can You Carry Forward Capital Losses?
Under certain conditions, some tax filers will have a large enough loss to carry forward into future tax years. Does the IRS impose any limits on how long this loss can be carried forward or the dollar amount that can be carried forward? Getting this number right can mean the difference between tax savings or unnecessarily paying more.
Can Improvements Be Used in a 1031 Exchange?
When purchasing a new property, it's not uncommon for an investor to want to improve it. If that property is part of a 1031 exchange, can those improvements be rolled into the exchange? If so, is a different type of exchange required? Are there any new exchange rules to be aware of when making improvements?
What is a Good Cap Rate for Commercial Real Estate?
The cap rate is a common method used for valuing real estate properties. Some investors even consider it the gold standard. However, the cap rate is only one part of a larger puzzle for valuing property.
What are the Differences Between a DST and Traditional Real Estate Investments?
Investors have a multitude of options when it comes to investing in commercial real estate (CRE).
