Pros and Cons of Doing a 1031 Exchange Into Retail Property
Due to their tax-deferral benefits and entry to new market sectors, 1031 exchanges have become a popular investment strategy for modern investors. One promising niche in which to conduct an exchange is retail property, which is eligible since these assets are inherently held for business or investment use.
Can You Do a 1031 Exchange With Distressed Properties?
Conducting a 1031 exchange is a tax-advantaged practice that allows you to delay capital gains tax payments. With the strict rules set by the IRS, however, it’s not surprising that many investors need clarification, especially if their asset has a few special characteristics. For example, can you do a 1031 exchange with distressed properties? The answer is yes, but there are a few considerations that make this yes more complicated than it seems.
Using a 1031 Exchange to Transition Into Senior Housing
As you age, you may begin looking for investments that offer long-term stability instead of high-risk, high-reward promises. Among the many strategies available, transitioning your portfolio to senior housing through 1031 exchanges is a viable option. This move may align with your changing lifestyle while also offering benefits like tax deferral.
Long-Term Implications of a 1031 Exchange
Entering a 1031 exchange is a smart strategic move for investors, allowing them to defer capital gains payments and keep more of their equity working for them. However, there are long-term implications of continuing 1031 exchange cycles — both good and bad. A proactive investor like yourself should understand these possibilities to better prepare for them in the future.
How To Handle Inherited 1031 Exchange Properties
Inheriting real estate is both a blessing and a financial puzzle, especially for assets that have been previously involved in transactions like 1031 exchanges. If your parents left you such properties, you may be wondering if there are any taxes you need to pay or processes you need to continue. In this article, Realized 1031 discusses 1031 exchange inherited property to help you understand what to do next. Let’s take a closer look.
Uses and Risks of Using Zero Cash-Flow Properties in a 1031 Exchange
A 1031 exchange is a tax-deferred transaction that can be used to postpone capital gains tax liability when selling and purchasing qualifying real estate. As you purchase a replacement property, there are plenty of options available to find the asset that suits your investment goals. One of these choices is the niche category of zero cash-flow properties. These are highly structured investments where you don’t earn any extra profit, but the income is paid to cover the property’s debt.
