Using a 1031 exchange involves exchanging one investment property for another without incurring immediate liability to pay any capital gains taxes on the property transactions. One of the key requirements of a 1031 exchange is that the same investor must be involved in both transactions. That means that the seller of the original investment property …
Read MoreCan a Single-Member LLC Do a 1031 Exchange? A Valuable Quick Guide
Overview of Delaware Statutory Trusts Delaware Statutory Trusts are a unique investment vehicle for multiple investors to purchase smaller shares of a real estate investment. They are typically treated as passive investment mechanisms through the use of a property management liaison to handle all of the operational aspects of renting out the property. Recently, these …
Real estate investors are turning to the tax deferral benefits of a 1031 exchange in droves to avoid paying significant depreciation taxes upon the sale of their investment properties. Even bonus depreciation recapture is eligible for 1031 exchanges. This is the investment vehicle of choice when real estate investors plan to sell off a current …
A Sample Calculation of Depreciation Recapture Tax The primary reason why prudent real estate investors use a 1301 exchange is to lower their tax liability in a given year. Essentially, this tax-sheltering mechanism involves an investor exchanging one property for another like-kind property without incurring any tax liability from the exchange, unlike many other investment …
Read MoreDepreciation Recapture Example | How to Avoid With the 1031 Exchange
If you sell property that you have been using as rental property, you may have to pay depreciation recapture, which is why you need to account for depreciation of the property each year when you file your taxes. When you sell the property, figuring out how you are going to be taxed on the depreciation …
Read MoreDo I Pay Depreciation Recapture on the Sale of Rental Property for Loss?
Owning investment or rental property is a good move. You’ll enjoy a steady influx of cash and build equity as the property increases in value with time. Investors who have rental property also receive tax benefits. For instance, the IRS will allow you to deduct related costs such as property taxes, repairs and mortgage insurance …
Read MoreDepreciation Recapture on Installment Sale of Rental Property – What You Need To Know
Delaware Statutory Trust Rate of Return If you are looking to do a 1031 exchange DST, you’re probably wondering what the typical Delaware Statutory Trust Rate of Return is. The biggest advantage of Delaware Statutory Trusts is that they’re a stable, passive investment. Their yield will be around the same or lower compared to a …
Since many real estate investments are held in an LLC rather than by individuals, there are questions about how to do a 1031 exchange with LLC. Specifically, if you’re part of a larger ownership group, and some members want to do a 1031 exchange and others don’t, what can you do? This guide to the …
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Florida’s 1031 exchange rules and regulations | Best 1031 exchange companies in Florida | Do I need to use a 1031 exchange company near me? Investors find Florida’s red-hot real estate irresistible. And many of those investors are using Florida 1031 exchanges to protect their profits from capital gains taxes. It’s a market fueled by Florida’s …
Read More1031 Exchange in Florida: Rules, Requirements, and the Best Companies to Use
Once you’ve learned about the incredible tax benefits of the 1031 exchange, investors start asking harder questions. Some of these questions include ones related to primary residence vs rental property in a 1031. “Can I turn my property from a 1031 exchange into primary residence?” “Can I benefit from both section 121 and section 1031 …
Read MoreHow to Turn a 1031 Exchange into Primary Residence – The Definitive Guide to Save On Taxes
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