Page 32 311 - 320 of 387
What Real Estate Investors Need To Know About Biden’s Tax Proposal
President Biden’s tax agenda includes several changes that may affect real estate investors. One of the more high-impact changes is the potential elimination of the 1031 exchange which many real estate investors take advantage of every year. Real estate tax law changes are expected to include:
What are the Four Different Types of 1031 Exchange Structures?
Using a 1031 exchange to move from one investment property to another while deferring the tax liability on any capital gain is a useful tool for real estate investors who want to reinvest the proceeds into like-kind assets. The name “1031 exchange” comes from Section 1031, Title 26 of the Internal Revenue Code, which contains the appropriate language that allows taxpayers to exchange real estate assets held for investment.
Real Estate Rollover
For many people, when they leave their job, they often bring their 401(k) with them. The 401(k) provides tax deferment benefits. In order to move their 401k out of the company, it needs to be rolled over into an IRA. This will allow the 401(k) tax deferment benefits to remain in place.
Can I do a 1031 Exchange Myself?
The execution of a 1031 exchange is a complicated process, and the IRS rules are strict. The investor can manage parts of the transaction, but not others, and it would be wise to have guidance for the overall scenario. How much of the planning and selection you can handle on your own partially depends on your skillset.
How Long Can Money Sit in a 1031 Exchange?
The 1031 exchange is a beneficial tool for investors to use when considering changes to the investment portfolio. Perhaps you are seeking to diversify your asset mix or shift from direct ownership to fractional investments. You can work toward various goals without paying taxes on the appreciation of the properties you are selling if you work within the exchange rules.
Qualified Opportunity Fund Gains and Like-Kind Exchanges
The Opportunity Zone program burst on the scene in late 2017 as a way in which trillions of dollars of capital gains could benefit lower-income communities. If you participate in the program, you could defer taxes on capital gains by rolling them into a Qualified Opportunity Fund (QOF).
1031 Exchanges Escaping the Chopping Block For Now
President Joe Biden signed nearly three dozen executive orders in the first six days of his administration. Most of them involve rolling back policies enacted under his predecessor or dealing with the ongoing Covid-19 pandemic.
Do I Need A Lawyer For A 1031 Exchange?
The 1031 exchange process can be complicated, especially for novice or first-time real estate investors. Completing a successful exchange requires strict adherence to deadlines and other IRS exchange provisions.
What is Revenue Procedure 2002-22?
In March of 2002, the IRS issued guidance for investors regarding undivided fractional interest when purchased as replacement properties in 1031 exchanges. In the form of Revenue Procedure 2002-22, the advice superseded and repealed Revenue Procedure 2000-46. 2002-22 issued the guidelines under which taxpayers could seek an advance ruling for treating undivided interests as allowable assets under Section 1031.
1031 Exchange Investment Timeline and Tax Implications
For investors intent on benefitting from the substantial advantages available through strategic employment of Section 1031 of the Internal Revenue Code, timing is critical. The foundation of the 1031 exchange is the concept that when an investor uses the proceeds of a property sale to purchase another property, the investor is, in effect, continuing the investment. Because the taxpayer is reinvesting all the profits, the IRS doesn't require payment of taxes on cash the taxpayer didn't receive. The investor should be aware that the tax is deferred, not eradicated. That means that if the taxpayer later sells a property without exchanging it for another qualified “like-kind” investment as a replacement, they will owe taxes on the accumulated gains.
Page 32 311 - 320 of 387
