Article on Mar 26, 2025 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 Mar 18, 2025 What Is a 1031 Tax Deferred Exchange? # 1031 Tax Deferred Exchange: Your Ticket to Smart Real Estate Investing Ready to sell your investment property but dread the tax bill? A 1031 exchange lets you defer capital gains by trading one investment property for another "like-kind" property. Despite the name, "like-kind" is surprisingly flexible—you can exchange an apartment for raw land or even fractional ownership in commercial properties through Delaware Statutory Trusts. Remember the crucial timelines: 45 days to identify replacement properties and 180 days to close. This powerful wealth-building strategy helps successful investors upgrade their portfolio while keeping the IRS at bay.
Article on Feb 27, 2025 Turning Your 2024 Capital Gains into Tax-Advantaged Opportunities Investors with significant 2024 capital gains can defer taxes until 2026 by investing in Qualified Opportunity Zones (QOZs) within 180 days of realizing gains. Beyond tax deferral, investments held for 10+ years may qualify for tax-free appreciation upon sale. Using the example of a $1M gain, investors could defer $238,000 in taxes while supporting community development through affordable housing, business spaces, and local job creation. QOZs offer both tax advantages and social impact opportunities.
Article on Feb 20, 2025 6 Risks of Delaware Statutory Trusts in 1031 Exchanges Delaware Statutory Trusts (DSTs) in 1031 exchanges come with six significant risks investors should consider: market volatility and potential losses, lack of direct control over investment decisions, illiquidity with long holding periods, multiple fees that can reduce returns, potential changes in IRS rulings affecting tax status, and strict operational restrictions known as the "seven deadly sins." While these risks shouldn't necessarily deter investors, success requires careful preparation, thorough due diligence, and guidance from experienced professionals to determine if DSTs align with personal financial goals.
Article on Jan 12, 2025 10 Ways Your 1031 Exchange Can Go Horribly Wrong Uncover the critical pitfalls that can derail your 1031 exchange and potentially cost you thousands in unexpected taxes. This comprehensive guide explores ten common mistakes investors make when attempting to defer capital gains through property exchanges. From timing violations to improper property identification, learn how seemingly minor oversights can transform a smart tax strategy into a financial burden. Perfect for real estate investors and professionals seeking to understand the complex IRS regulations governing like-kind exchanges. Discover essential tips for avoiding these costly errors and ensure your 1031 exchange succeeds with expert insights on proper execution, documentation requirements, and qualification criteria.
Article on Jan 12, 2025 What Republican Control Means for 1031 Exchanges and QOZs This timely analysis examines how the Republican sweep of Congress and the White House could reshape two key real estate investment strategies: 1031 exchanges and Qualified Opportunity Zones. While Republicans historically favor these tax-advantaged vehicles, deficit concerns and other factors could lead to unexpected changes. The article offers valuable insights for investors looking to navigate potential policy shifts, including possible program extensions, regulatory streamlining, and new opportunities in the energy sector.
Article on Dec 24, 2024 Top 10 Myths About 1031 Exchanges, Debunked The article debunks 10 common misconceptions about 1031 exchanges in real estate investing. It clarifies that these tax-deferral strategies aren't just for the wealthy, must involve like-kind real estate properties, and don't permanently eliminate taxes. The piece emphasizes strict timing requirements, the necessity of qualified intermediaries, and explains why fix-and-flip properties don't qualify. Written with humor and practical examples, it also highlights that 1031 exchanges can be valuable for modest investments and offers flexibility if investors change their minds during the process.
Article on Oct 31, 2024 Trump vs. Harris: Potential Impacts on Qualified Opportunity Zones and 1031 Exchanges The upcoming election could significantly impact two major real estate investment strategies: Qualified Opportunity Zones (QOZs) and 1031 exchanges. Trump would likely maintain or expand both programs, viewing them as successful economic growth tools. In contrast, Harris would probably push for reforms, including enhanced reporting requirements for QOZs and potential income caps on 1031 exchange eligibility. Market impacts could vary dramatically: a Harris victory might trigger a rush to complete 1031 exchanges before new restrictions, while Trump's policies could drive up property values in opportunity zones. However, both candidates' ability to implement changes will depend heavily on congressional control.
Article on Oct 18, 2024 IRS Extends 1031 Exchange Deadlines for Victims of Milton and Helene In response to the devastating impacts of Hurricanes Helene and Milton across the southern United States, the Internal Revenue Service...
Article on Sep 16, 2024 The Magic of 1031 Exchanges How a New York man turned $500,000 into $3 Million (and kept the tax man at bay!) Folks sometimes ask...
Article on Aug 26, 2024 Can An LLC Do A 1031 Exchange? Can An LLC Do A 1031 Exchange? LLCs became a popular form of real estate ownership as they limit the...
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...
