Selling an Inherited Rental with a Stepped-Up Basis: Do You Still Need a 1031 Exchange?
Inheriting real estate can often feel like a financial windfall, but it also comes with significant strategic decisions. Investment property owners who inherit rental properties have a valuable tool at their disposal: the stepped-up basis. But what exactly does it mean, and how might it influence your decision to undertake a 1031 Exchange? This post explores these questions.
1031 Exchange and Divorce: What Happens to Your Rental Property and Tax Deferral?
Divorce is often an emotional and financial upheaval, further compounded when investment properties and 1031 exchanges are involved. For investment property owners, understanding how a divorce can impact a 1031 exchange and subsequent tax deferral is crucial.
How Rising Rates and Cap Rates Affect 1031 Exchange Options for Long-Held Properties
In recent years, the specter of rising interest rates has emerged as a significant influence on real estate investment strategies, particularly affecting the calculus of executing 1031 exchanges. As interest rates climb, property owners considering like-kind exchanges must navigate a landscape in which rising borrowing costs and fluctuating capitalization rates, or cap rates, could fundamentally shift the economic feasibility of these investments.
What Long-Time Landlords Should Know About Depreciation Recapture Before Selling
For many real estate investors and long-time landlords, selling a rental property marks a significant financial milestone. However, one often overlooked yet crucial aspect that can impact your net proceeds is depreciation recapture. Understanding this concept is vital, especially for those who have benefited from years of depreciation tax deductions.
How to Talk to Your CPA About 1031 Exchanges, DSTs, and QOZs (Checklist + Questions)
Navigating the intricacies of 1031 Exchanges, Delaware Statutory Trusts (DSTs), and Qualified Opportunity Zones (QOZs) can be a daunting task for any investment property owner. These real estate strategies offer significant tax-deferral opportunities but come with their own rules and nuances. Engaging with a knowledgeable Certified Public Accountant (CPA) can be instrumental in ensuring that you're maximizing these opportunities while remaining compliant with IRS regulations. Here’s a guide to discussing these topics with your CPA, complete with a useful checklist and pertinent questions.
What to Do When Your Rental Is Fully Depreciated: Exit, 1031 Exchange, or DST?
When you've owned your rental property long enough for it to be fully depreciated, you face critical decisions about the best course of action. A fully depreciated property, having reached the end of its IRS-designated useful life for tax purposes, no longer offers depreciation tax benefits. Here, we'll explore options including exiting the investment, executing a 1031 Exchange, or leveraging a Delaware Statutory Trust (DST).
