When 3.5% Cash Flow is More Attractive Than 5% Cash Flow – Understanding Tax Equivalent Yield

Why should an investor 1031 exchange into a 3.5% projected cash flow multifamily DST instead of the seemingly more attractive 5% net lease DST featuring a FedEx, Tractor Supply, Dollar General, Burger King, or CVS Pharmacy? The answer comes down to the benefits of real estate depreciation and tax equivalent yield.

November 30th, 2022|Articles|

How to Do A Successful 1031 Exchange

In short, Section 1031 of the Internal Revenue Code allows property owners to defer their capital gains tax by exchanging their property for “like-kind real estate” (also known as replacement property) with the proceeds from their sale. This strategy is a powerful tax deferment method that many successful investors in the United States utilize – but it is still quite tricky to navigate due to the many rules that must be followed.

January 24th, 2021|1031 Exchange, Articles|

Using a 1031 Exchange to Turn a Rental Property Into Your Primary Residence

A 1031 exchange only applies to investment properties -- or does it? If you sell an investment property, you can get hit with a large tax bill, especially if you sell it for a large profit. However, a 1031 exchange allows you to use the proceeds from that investment property to buy another and defer any tax liability in the process.

January 25th, 2020|1031 Exchange, Articles, DST, News|