Article on Aug 12, 2024 1031 Exchange vs. Qualified Opportunity Zones: Which Is Better? 1031 Exchange vs. Qualified Opportunity Zones Instant & Long-Term Tax Advantages Today investors can structure real estate investments to generate...
Article on Jul 17, 2024 How Savvy Investors Use A 1031 Exchange To Defer Capital Gains and Build Wealth 1031 exchange to defer capital gains Before putting a real estate property up for sale or deciding to purchase another,...
Article on Jul 7, 2024 Passive Real Estate Investing With A Delaware Statutory Trust A Delaware Statutory Trust (DSTs) enables passive real estate investing into large-scale multifamily, retail, and commercial properties managed by industry experts. Investors benefit from stable cashflow, diversification, tax deferral through 1031 exchanges, and hands-off ownership in institutional-quality assets.
Article on Jun 29, 2024 Exchange Real Estate Headaches for Silent and Passive Income A 1031 Tax Deferred Exchange combined with a Delaware Statutory Trust (DST) offers real estate investors a solution for tax savings and passive income. DSTs allow investors to participate in large-scale commercial properties without the hassles of direct ownership. This strategy is ideal for retirees or those looking to escape the headaches of managing rental properties. By using a 1031 exchange to invest in DSTs, investors can defer capital gains taxes and receive regular, tax-advantaged monthly income. DSTs are offered by established real estate firms and provide access to high-quality properties with professional management. This approach solves tax issues while providing reliable passive income.
Article on Jun 12, 2024 Why the Attack on 1031 Exchanges Is Likely to Fail (Again) President Biden's proposed budget for fiscal year 2025 includes a $500,000 annual cap on capital gains tax deferrals through 1031 exchanges. While this proposal would be devastating to real estate investors and the economy, it is unlikely to become law. The president's budget is primarily a political document, not a practical one, and often includes items that have little chance of success but serve to signal priorities and appease constituencies. Similar proposals have failed in the past, and this one is expected to meet the same fate. Investors should stay informed but avoid making panic-driven decisions.
Article on Jun 12, 2024 Can You 1031 Exchange into a REIT? While a 1031 exchange directly into a REIT is not allowed, investors can still defer capital gains taxes and access institutional-quality real estate through two alternatives: UPREITs (721 exchanges) and Delaware Statutory Trusts (DSTs). UPREITs allow investors to contribute property to an operating partnership for units that can later convert to REIT shares tax-free. DSTs offer fractional ownership in diverse property portfolios, combining direct ownership benefits with professional management. Both options provide tax efficiency, passive income, and exposure to high-quality assets otherwise inaccessible to individual investors, making them compelling solutions for those seeking to redeploy investment proceeds.
Article on May 31, 2024 It’s Not Too Late to Defer 2023 Capital Gains Taxes The article discusses strategies for investors to defer capital gains taxes realized in 2023. One key option highlighted is investing the gains into a qualified opportunity zone (QOZ) fund, which can defer the original capital gains taxes until at least the end of 2026, and potentially exempt future gains if held for 10 years or more. The article notes that partnerships have added flexibility, with extended deadlines that allow partners to reinvest gains into a QOZ fund by as late as September 2024. However, the article cautions that QOZ investments require careful research, as they are generally illiquid long-term commitments with varying returns. The advice is to work with tax and financial professionals to navigate the program requirements and identify the right QOZ investment for deferring 2023 capital gains.
Article on May 26, 2024 Considering a 1031 Exchange? The Rules You Need to Know The article explains the key rules and strategies around the 1031 tax-deferred exchange, a powerful tool for real estate investors. Fundamentally, a 1031 exchange allows investors to defer capital gains taxes by reinvesting the proceeds from the sale of one investment property into a "like-kind" replacement property. The article outlines the strict timelines involved, the requirement to reinvest the full sale proceeds, and the different exchange structures available. It cautions that professional assistance is critical to navigate the complexities and avoid costly mistakes. Ultimately, the 1031 exchange can be a valuable way to indefinitely defer capital gains, unless the investor decides to cash out, in which case the taxes become due.
Article on Apr 3, 2024 How A Phone Call Saved My Friend Over $50,000 Using A 1031 Exchange Sometimes it’s better to be lucky than good, and the timing of a phone call from a friend of mine...
Article on Feb 28, 2024 How To Not Screw Up A 1031 Tax-Free Exchange How To Not Screw Up A 1031 Tax-Free Exchange Without question, real estate is one of the very best ways...
Article on Feb 19, 2024 Tax Straddles and 1031 Exchanges: What Investors Need to Know If timed incorrectly between selling at a tax loss and acquiring asset replacements, the IRS may deny recognizing capital losses meant to offset gains by classifying as prohibited "wash sales". Taxpayers pursuing both loss harvesting and tax-deferred 1031 strategies must understand specific rules governing sequencing and timing between transactions to avoid negative liability impacts.
Article on Jan 22, 2024 1031 Exchanges: A Matter of Life and Death? Selling appreciated investment real estate sans exit planning triggers monumental capital gains taxes erasing wealth built over years. Steep levies forcing liquidation burns through equity funding future retirement. But tax-deferral solutions exist - investors can exchange properties while rolling gains into diversified real estate assets like Delaware Statutory Trusts, mirroring 1031 benefits. Essentially trading existing buildings for fractional stakes in larger portfolios defers tax events. Education is essential beforehand so hard-fought empires don't crumble needlessly overnight from lack of vision when vehicles now sustain wealth long-term.
